JCET Group Records Strong Performance in Q1

SHANGHAI,April 30,2020 -- Global leading semiconductor microsystem integration packaging and test provider,JCET Group (SH: 600584) reported the financial results for Q1 2020,ended March 31,2020.

Q1 2020 financial highlights:

Revenue was RMB 5,708 million,a record high in the first quarter. On a comparable basis,taking into account the accounting change in revenue recognition,it was an increase of 44.2% year on year (see note*).

Generated RMB 1,149 million cash from operations,up 579% year on year. With net capex investments of RMB 671 million,the free cash flow for the quarter was RMB 478 million.

Net profit was RMB 133.8 million,a record first quarter high in the past five years.

Earnings per share was 0.08 RMB,as compared to -0.03 in Q1 2019.

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 803 million respectively in the reporting period. 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 6,511 million,an increase of 44.2% over the same period last year.

JCET Group CFO Ms. Janet Chou said,"JCET Group has been a leading innovator in System in Package,Wafer Level and Flip Chip advanced microsystem integration technologies for years. The ramping up of 5G market segments provided a perfect match for JCET Group's advanced technologies and manufacturing capabilities. JCET Group overcame the impact of Covid-19 and went against the industry trend,with revenues of RMB 5,708 million which was a record high for the first quarter."

About JCET Group:

JCET Group is a leading global semiconductor microsystem 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 three R&D centers,six manufacturing locations in China,Singapore and Korea,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)

31 March 2020

Expressed in Renminbi Yuan

ASSETS

31 March 2020

31 December 2019

Current assets

Currency funds

2,667,287,264.14

2,569,393,396.00

Derivative financial assets

180,674.37

4,119,413.24

Accounts receivable

3,004,234,491.07

3,349,731,893.13

Receivables financing

39,363,670.87

67,584,630.96

Prepayments

212,443,068.51

187,863,377.10

Other receivables

9,293,025.43

10,944,727.48

Inventories

2,581,182,782.87

2,730,914,425.68

Current portion of non-current assets

137,458,152.98

137,152.98

Other current assets

366,923,222.68

501,350,372.47

Total current assets

9,018,366,352.92

9,559,360,389.04

Non-current assets

Long-term receivables

38,975,986.44

40,222,976.53

Long-term equity investments

966,281,402.61

971,660,594.36

Other equity investments

526,890,056.51

517,049,881.56

Investment properties

98,957,148.36

99,877,458.60

Fixed assets

17,630,171,071.32

17,798,818,045.91

Construction in progress

1,543,924,889.46

1,664,082,709.03

Intangible assets

592,291.59

586,737,281.83

Goodwill

2,261,147,119.92

2,213,786,772.01

Long-term prepaid expenses

1,034,770.80

1,256,235.80

Deferred tax assets

122,964,117.85

128,106,315.77

Other non-current assets

738,596.31

934,907.57

Total non-current assets

23,783,103,451.17

24,022,533,178.97

Total assets

32,801,469,804.09

33,893,568.01

CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited)

31 March 2020

Expressed in Renminbi Yuan

LIABILITIES AND EQUITY

31 March 2020

31 December 2019

Current liabilities

Short-term borrowings

6,788,675,448.76

9,098,056,842.77

Derivative financial liabilities

129,247,374.07

160,941,443.47

Notes payable

652,010,110.73

958,145,682.25

Accounts payable

4,024,475,573.16

4,617,703,102.89

Receipts in advance

0.00

112,646,926.13

Contract liabilities

73,173,140.74

0.00

Employee benefits payable

505,143.68

586,441,964.86

Taxes and surcharges payable

60,748,543.35

53,226,873.84

Other payables

207,479,982.69

235,425,281.38

Current portion of non-current liabilities

1,841,259,569.03

1,826,772,611.88

Total current liabilities

14,282,638,886.21

17,649,729.47

Non-current liabilities

Long-term borrowings

3,037,255,169.36

1,384,891.47

Bonds payable

1,000,000.00

0.00

Long-term payables

1,071,846.56

1,215,622,628.92

Long-term employee benefits payable

2,045,009.96

1,405,672.34

Deferred income

327,442,496.71

336,470,799.39

Deferred tax liabilities

176,252.41

156,450.06

Total non-current liabilities

5,615,608,775.00

3,294,177,442.18

Total liabilities

19,898,661.21

20,943,538,171.65

Equity

Paid-in capital

1,602,874,555.00

1,555.00

Surplus reserves

10,242,039,552.06

10,552.06

Accumulated other comprehensive income

559,711,303.19

428,946,927.71

Specialised reserves

122,283,975.32

122,975.32

Unappropriated profit

365,073,592.09

231,285,970.34

Total equity attributable to owners of the parent

12,891,982,977.66

12,627,430,980.43

Minority shareholders

11,239,165.22

10,415.93

Total equity

12,903,142.88

12,355,396.36

Total liabilities and equity

32,568.01

CONSOLIDATED INCOME STATEMENT (Unaudited)

For The Three Months Ended 31 March 2020

Expressed in Renminbi Yuan

For The Three Months Ended of March 31

2020

2019

Revenue

5,708,216.96

4,514,773,490.97

Less: Cost of sales

4,960,797.74

4,148,858,484.70

Taxes and surcharges

8,496,390.50

8,427,302.31

Selling expenses

56,415,920.92

64,459,043.18

Administrative expenses

209,175,100.75

245,961,758.35

Research and development expenses

214,447,183.03

172,776,325.03

Finance expenses

146,866,963.10

247,718.09

Including: Interest expenses

153,683.35

197,529.98

Interest income

8,963,046.00

7,448,691.54

Add:Other income

34,096,572.65

143,267,973.38

Investment income

-1,424.01

-1,630.50

Including: Income from investments in associates and joint

ventures (loss is expressed by"-")

-1,630.50

Loss on the net position hedging (loss is expressed by"-")

-1,677,212.22

0.00

Credit impairment losses (loss is expressed by"-")

4,897,177.94

1,461,773.07

Impairment losses (loss is expressed by"-")

3,476,919.20

3,001,528.85

Profit/Loss on disposal of assets (loss is expressed by"-")

3,595,368.41

-64,624.42

Operating profit/(loss)

155,262.89

-227,370,120.31

Add: Non-operating income

129,297.09

472,293.14

Less: Non-operating expenses

5,920,556.72

3,532,845.12

Profit/(loss) before income taxes

149,464,003.26

-230,672.29

Less: Income tax expenses

15,361,632.22

-184,374,430.08

Net Profit/(loss)

134,102,371.04

-46,242.21

Classified by continuity of operations

Profit/(loss) from continuing operations

134,242.21

Classified by ownership

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

133,787,621.75

-46,516,845.29

Net Profit/(loss) attributable to minority shareholders

314,749.29

460,603.08

CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited)

For The Three Months Ended 31 March 2020

Expressed in Renminbi Yuan

For The Three Months Ended of March 31

2020

2019

Other comprehensive income,net of tax

130,764,375.48

-212,318,509.95

Comprehensive income attributable to owners of the parent

130,509.95

Comprehensive income to be reclassified to profit or loss

130,509.95

Comprehensive income using the equity method

148,427.34

0.00

Cash flow hedge reserve

-2,186,816.98

3,829.91

Exchange differences of foreign currency financial statements

132,802,765.12

-215,612,339.86

Total comprehensive income

264,746.52

-258,752.16

Including:

Total comprehensive income attributable to owners of the parent

264,551,997.23

-258,835,355.24

Total comprehensive income attributable to minority shareholders

314,603.08

Earnings per share

Basic earnings per share

0.08

-0.03

Diluted earnings per share

0.08

-0.03

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)

For The Three Months Ended 31 March 2020

Expressed in Renminbi Yuan

For The Three Months Ended of March 31

2020

2019

1

CASH FLOWS FROM OPERATING ACTIVITIES

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

6,987,407.22

5,409,211,254.94

Receipts of taxes and surcharges refunds

222,820,490.19

84,680.63

Other cash receipts relating to operating activities

292,911,054.91

166,305,244.26

Total cash inflows from operating activities

6,550,718,952.32

5,659,562,179.83

Cash payments for goods and services

4,225,613.14

4,274,933,708.31

Cash payments to and on behalf of employees

958,765,445.26

961,621,785.97

Payments of all types of taxes and surcharges

89,648,853.34

118,435,872.25

Other cash payments relating to operating activities

128,353,850.33

135,377,603.19

Total cash outflows from operating activities

5,402,134,762.07

5,490,368,969.72

Net cash flows from operating activities

1,190.25

169,193,210.11

2

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments

72,000.00

15,900,000.00

Cash receipts from investment income

36,000.00

23,850,000.00

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

long-term assets

6,683,773.20

5,781,022.60

Other cash receipts relating to investing activities

0.00

20,000.00

Total cash inflows from investing activities

6,791,773.20

65,531,022.60

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

term assets

677,493,801.79

589,599,854.74

Total cash outflows from investing activities

677,854.74

Net cash flows from investing activities

-670,702,028.59

-524,068,832.14

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)

For The Three Months Ended 31 March 2020

Expressed in Renminbi Yuan

For The Three Months Ended of March 31

2020

2019

3

CASH FLOWS FROM FINANCING ACTIVITIES

Cash receipts from borrowings

5,930,556,630.68

5,861,598,188.73

Total cash inflows from financing activities

5,188.73

Cash repayments for debts

5,192,045.98

6,827,205,711.73

Cash payments for distribution of dividends or profit and interest expenses

163,937,060.56

301,352.01

Other cash payments relating to financing activities

173,562.04

432,652,569.27

Total cash outflows from financing activities

6,085,522,668.58

7,560,977,633.01

Net cash flows from financing activities

-154,966,037.90

-1,699,379,444.28

4

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH

EQUIVALENTS

22,800,903.29

-20,118,766.71

5

NET INCREASE IN CASH AND CASH EQUIVALENTS

345,717,027.05

-2,074,373,833.02

Add: Cash and cash equivalents at beginning of the year

1,865,553,082.53

4,206,347,524.52

6

CASH AND CASH EQUIVALENTS AT END OF THE YEAR

2,270,109.58

2,131,973,691.50