Q2 2023 Financial Highlights:
Revenue was RMB 6.31 billion, an increase of 7.7% quarter-on-quarter. Generated RMB 1.19 billion cash from operations. With net capex investments of RMB 0.75 billion, free cash flow for the quarter was RMB 0.44 billion. Net profit was RMB 0.39 billion, an increase of 250.8% quarter-on-quarter. Earnings per share was RMB 0.22, as compared to RMB 0.39 in Q2 2022.
1H 2023 Financial Highlights:
Revenue was RMB 12.17 billion. Generated RMB 2.42 billion cash from operations. With net capex investments of RMB 1.56 billion, free cash flow for the first half of 2023 was RMB 0.86 billion. Net profit was RMB 0.5 billion. Earnings per share was RMB 0.28, as compared to RMB 0.87 in 1H 2022.
SHANGHAI, Aug. 25, 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 first half year of 2023. The financial report shows that in the first half of 2023, JCET achieved revenue of RMB 12.17 billion, and net profit of RMB 0.5 billion. In Q2 2023 JCET achieved revenue of RMB 6.31 billion, an increase of 7.7% quarter-on-quarter, and net profit of RMB 0.39 billion, an increase of 250.8% quarter-on-quarter.
In the first half of 2023, the global semiconductor industry was in the fluctuating stage of bottoming out and rebounding. JCET adhered to high-performance advanced packaging technologies and product development mechanism, focusing on solutions for emerging applications such as high performance computing and storage, enhanced strategic layout of production capacity, and further strengthened its market position in the global IC industry.
JCET continues to enhance its technological innovation, with R&D investment of RMB 0.67 billion in the first half of this year, a year-on-year increase of 5.0%. The company’s multi-dimensional fan-out heterogeneous integration solution XDFOI™ for 2.5D/3D packaging achieved HVM, providing high-performance chiplet package solutions and production capacity for global customers. In collaboration with multiple customers in the field of high-density SiP technology, JCET has achieved the development and mass production of multiple RFFE modules and AiP modules in the 5G millimeter-wave market. The company is intensifying its market exploration in sectors such as automotive electronics, industrial electronics, and high-performance computing. During the reporting period, revenue from automotive electronics achieved a year-on-year growth of 130%. The company has established a subsidiary with controlling stake in the Lingang New Area of Shanghai, reinforcing its strategic capacity layout in the field of automotive electronics.
In addition, the company has optimized various operational expenses and asset structures, maintaining a stable cash flow capability. It has achieved positive free cash flow for 15 consecutive quarters.
While pursuing its own development, JCET actively engages in philanthropic efforts, contributing to society in areas such as health and environmental protection, disaster relief during floods, and science popularization initiatives.
Mr. Li Zheng, CEO of JCET, said, “JCET has always centered its focus on customers, and achieved quarter-on-quarter growth in performance for the second quarter of this year. Looking ahead, the direction of high-performance advanced packaging technology driving the innovation of the IC industry has become increasingly clear. JCET remains committed to achieving high-quality development through professional and international management, and will continue to create value for investors and the IC industry.”
For more information, please refer to the JCET 1H FY2023 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
Jun 30, 2023
Dec 31, 2022
ASSETS
Current assets
Currency funds
5,352
2,459
Trading financial assets
2,006
4,316
Derivative financial assets
0
18
Accounts receivable
3,545
3,689
Receivables financing
105
59
Prepayments
127
110
Other receivables
63
61
Inventories
3,003
3,152
Other current assets
251
279
Total current assets
14,452
14,143
Non-current assets
Long-term receivables
41
40
Long-term equity investments
744
765
Other equity investments
456
440
Investment properties
87
89
Fixed assets
19,574
19,517
Construction in progress
710
807
Right-of-use assets
567
578
Intangible assets
483
483
Goodwill
2,293
2,210
Long-term prepaid expenses
22
28
Deferred tax assets
274
247
Other non-current assets
106
61
Total non-current assets
25,357
25,265
Total assets
39,809
39,408
LIABILITIES AND EQUITY
Jun 30, 2023
Dec 31, 2022
Current liabilities
Short-term borrowings
1,211
1,174
Derivative financial liabilities
2
0
Notes payable
215
339
Accounts payable
4,603
4,634
Contract liabilities
273
214
Employee benefits payable
689
984
Taxes and surcharges payable
158
210
Other payables
396
378
Current portion of long-term liabilities
2,857
3,096
Other current liabilities
4
4
Total current liabilities
10,408
11,033
Non-current liabilities
Long-term borrowings
3,013
2,721
Lease liabilities
549
562
Long-term employee benefits payable
11
14
Deferred income
362
340
Deferred tax liabilities
14
40
Other non-current liabilities
41
55
Total non-current liabilities
3,990
3,732
Total liabilities
14,398
14,765
Equity
Paid-in capital
1,787
1,780
Capital reserves
15,265
15,080
Accumulated other comprehensive income
750
400
Specialized reserves
2
0
Surplus reserves
229
229
Unappropriated profit
7,292
7,154
Total equity attributable to owners of the parent
25,325
24,643
Minority shareholders
86
0
Total equity
25,411
24,643
Total liabilities and equity
39,809
39,408
CONSOLIDATED INCOME STATEMENT (Unaudited)
RMB in millions, except share data
Three months ended
Six months ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Revenue
6,313
7,455
12,173
15,594
Less: Cost of sales
5,359
6,107
10,525
12,706
Taxes and surcharges
27
27
47
43
Selling expenses
51
48
100
97
Administrative expenses
175
236
347
494
Research and development expenses
360
315
669
638
Finance expenses
(7)
(8)
51
15
Including: Interest expenses
68
49
131
92
Interest income
27
9
35
16
Add: Other income
40
26
73
83
Investment income / (loss)
(24)
28
(21)
40
Including: Income / (loss) from investments in associates and joint ventures
(10)
(2)
(21)
(7)
Gain / (loss) on changes in fair value of financial assets/liabilities
37
(17)
46
(14)
Credit impairment (loss is expressed by “-“)
(6)
2
(1)
(5)
Asset impairment (loss is expressed by “-“)
(5)
(65)
0
(64)
Gain / (loss) on disposal of assets
13
9
16
23
Operating profit / (loss)
403
713
547
1,664
Add: Non-operating income
2
1
3
6
Less: Non-operating expenses
0
1
4
1
Profit / (loss) before income taxes
405
713
546
1,669
Less: Income tax expenses
19
31
50
126
Net profit / (loss)
386
682
496
1,543
Classified by continuity of operations
Profit / (loss) from continuing operations
386
682
496
1,543
Classified by ownership
Net profit / (loss) attributable to owners of the parent
386
682
496
1,543
Net profit / (loss) attributable to minority shareholders
0
0
0
0
Add: Unappropriated profit at beginning of period
7,264
5,196
7,154
4,335
Less: Cash dividends declared
358
356
358
356
Unappropriated profit at end of period (attributable to owners of the parent）
7,292
5,522
7,292
5,522
Other comprehensive income, net of tax
481
419
350
386
Comprehensive income attributable to owners of the parent
481
419
350
386
Comprehensive income not be reclassified to profit or loss
6
0
17
0
Remeasurement gains or losses of a defined benefit plan
0
0
1
0
Change in the fair value of other equity investments
6
0
16
0
Comprehensive income to be reclassified to profit or loss
475
419
333
386
Comprehensive income using the equity method that may be reclassified to profit or loss
0
(7)
0
(7)
Cash flow hedge reserve
0
(13)
0
(18)
Exchange differences of foreign currency financial statements
475
439
333
411
Total comprehensive income
867
1,101
846
1,929
Including:
Total comprehensive income attributable to owners of the parent
867
1,101
846
1,929
Total comprehensive income attributable to minority shareholders
0
0
0
0
Earnings per share
Basic earnings per share
0.22
0.39
0.28
0.87
Diluted earnings per share
0.22
0.39
0.28
0.87
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
RMB in millions
Three months ended
Six months ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services
6,178
8,184
13,162
16,999
Receipts of taxes and surcharges refunds
122
32
216
147
Other cash receipts relating to operating activities
110
62
163
132
Total cash inflows from operating activities
6,410
8,278
13,541
17,278
Cash payments for goods and services
4,069
5,766
8,454
11,612
Cash payments to and on behalf of employees
878
1,060
2,072
2,309
Payments of all types of taxes and surcharges
254
314
466
501
Other cash payments relating to operating activities
22
93
128
171
Total cash outflows from operating activities
5,223
7,233
11,120
14,593
Net cash flows from operating activities
1,187
1,045
2,421
2,685
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments
4,350
4,160
8,280
5,160
Cash receipts from investment income
38
32
52
38
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets
7
8
32
34
Net cash receipts from disposal of subsidiaries and other business units
0
(1)
0
27
Total cash inflows from investing activities
4,395
4,199
8,364
5,259
Cash payments to acquire fixed assets, intangible assets and other long-term assets
749
651
1,588
1,550
Cash payments for investments
3,200
4,310
5,980
5,960
Total cash outflows from investing activities
3,949
4,961
7,568
7,510
Net cash flows from investing activities
446
(762)
796
(2,251)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others
230
0
230
0
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries
86
0
86
0
Cash receipts from borrowings
1,317
985
1,664
1,515
Total cash inflows from financing activities
1,547
985
1,894
1,515
Cash repayments for debts
755
988
1,740
1,734
Cash payments for distribution of dividends or profit and interest expenses
414
49
467
90
Other cash payments relating to financing activities
16
446
48
589
Total cash outflows from financing activities
1,185
1,483
2,255
2,413
Net cash flows from financing activities
362
(498)
(361)
(898)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
45
59
37
57
NET INCREASE IN CASH AND CASH EQUIVALENTS
2,040
(156)
2,893
(407)
Add: Cash and cash equivalents at beginning of period
3,306
2,512
2,453
2,763
CASH AND CASH EQUIVALENTS AT END OF PERIOD
5,346
2,356
5,346
2,356
