JCET Group Integration Turns Loss to Profit in 2019

SHANGHAI,April 30,2020 -- Global leading semiconductor microsystem integration packaging and test provider,JCET Group (SH: 600584) reported the financial results for full year 2019,ended December 31,2019.

2019 full year financial highlights:

Revenue for the year was RMB 23,526 million,as compared to RMB 23,856 million in 2018.

Generated RMB 3,176 million cash from operations,an increase of 26.6% from 2018. With net capex investments of RMB 2,736 million,free cash flow for the year was RMB 441 million.

Net profit was RMB 89 million,as compared to a loss of 939 million in 2018.

Earnings per share was RMB 0.06,as compared to RMB -0.65 in 2018.

JCET Group CEO Mr. Li Zheng said,"JCET Group is gradually realizing the synergy among the companies under the group with a series of integration and adjustment measures implemented. Our portfolio of technologies,capabilities and capacities match the needs of customers and the market more appropriately. JCET Group is working aggressively on advancements in R&D,production and operations and has made significant progress. In 2019,JCET Group gained a profit of RMB 89 million,which is a qualitative improvement compared with 2018. Our achievements are closely connected with our customers' recognition of JCET Group's brand,quality,service and technical capabilities."

JCET Group is an industry leader in the development of advanced packaging technologies,with a comprehensive portfolio of technical products and complete full turnkey services for our customers all over the world. Benefiting from both the semiconductor industry's continued rapid growth and recognition by customers of the company's brand and consistent outstanding quality,JCET Group ranks near the top of the global semiconductor packaging and test industry. With the 5G era ramping up,JCET Group will continue to invest in the development of solutions for 5G communication,mobile terminals,automotive electronics,big data memory,AI and IoT industries,while closely aligning with customers to achieve mutual success.

JCET Group 2019 Annual Report

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

31 December 2019

Expressed in Renminbi Yuan

ASSETS

31 December 2019

31 December 2018

Current assets

Currency funds

2,569,393,396.00

4,774,269,922.92

Derivative financial assets

4,119,413.24

1,922,363.72

Notes receivable

0.00

91,323,124.65

Accounts receivable

3,349,731,893.13

2,779,382,584.24

Receivables financing

67,584,630.96

0.00

Prepayments

187,863,377.10

197,362,287.60

Other receivables

10,944,727.48

151,613,133.40

Inventories

2,730,914,425.68

2,273,896.44

Current portion of non-current assets

137,458,152.98

124,238,367.69

Other current assets

501,350,372.47

511,684,443.56

Total current assets

9,559,360,389.04

10,905,381,124.22

Non-current assets

Available-for-sale financial assets

0.00

405,909,682.09

Long-term receivables

40,222,976.53

47,130,045.11

Long-term equity investments

971,660,594.36

190,369,225.77

Other equity investments

517,049,881.56

0.00

Investment properties

99,877,458.60

117,526,718.28

Fixed assets

17,798,818,045.91

16,179,209,690.65

Construction in progress

1,664,082,709.03

3,453,861,241.82

Intangible assets

586,737,281.83

635,188,017.08

Goodwill

2,213,786,772.01

2,271,301,559.78

Long-term prepaid expenses

1,256,235.80

772,851.48

Deferred tax assets

128,106,315.77

83,600,496.22

Other non-current assets

934,907.57

137,150,377.86

Total non-current assets

24,022,533,178.97

23,522,019,906.14

Total assets

33,581,893,568.01

34,427,401,030.36

CONSOLIDATED BALANCE SHEET (CONTINUED)

31 December 2019

Expressed in Renminbi Yuan

LIABILITIES AND EQUITY

31 December 2019

31 December 2018

Current liabilities

Short-term borrowings

9,098,056,842.77

7,128,699,854.55

Derivative financial liabilities

160,941,443.47

137,935,110.87

Notes payable

958,145,682.25

650,097,598.13

Accounts payable

4,617,703,102.89

4,169,887,317.71

Receipts in advance

112,646,926.13

112,808,250.03

Employee benefits payable

586,441,964.86

453,515.12

Taxes and surcharges payable

53,226,873.84

109,398,233.53

Other payables

235,425,281.38

362,555,207.79

Current portion of non-current liabilities

1,826,772,611.88

5,280,194,159.04

Total current liabilities

17,649,729.47

18,404,246.77

Non-current liabilities

Long-term borrowings

1,384,891.47

2,933,790,044.10

Long-term payables

1,215,622,628.92

329,090,257.01

Long-term employee benefits payable

1,405,672.34

815,921.74

Deferred income

336,470,799.39

269,351,180.54

Deferred tax liabilities

156,293,450.06

165,407,393.44

Other non-current liabilities

0.00

28,904,903.75

Total non-current liabilities

3,294,177,442.18

3,727,359,700.58

Total liabilities

20,943,538,171.65

22,132,236,947.35

Equity

Paid-in capital

1,602,874,555.00

1,555.00

Surplus reserves

10,242,039,552.06

10,498,350.42

Accumulated other comprehensive income

428,946,927.71

181,546.61

Specialized reserves

122,283,975.32

122,975.32

Unappropriated profit

231,285,970.34

142,532.75

Total equity attributable to owners of the parent

12,627,430,980.43

12,292,223,960.10

Minority shareholders

10,924,415.93

2,940,122.91

Total equity

12,638,355,396.36

12,295,164,083.01

Total liabilities and equity

33,030.36

CONSOLIDATED INCOME STATEMENT

Year ended 31 December 2019

Expressed in Renminbi Yuan

For The Year Ended of December 31

2019

2018

Revenue

23,279,785.46

23,856,487,366.62

Less: Cost of sales

20,895,116,352.45

21,758,310.68

Taxes and surcharges

36,665,583.88

45,921,812.58

Selling expenses

264,828,644.36

285,371,372.61

Administrative expenses

1,043,776,803.88

1,110,520,305.93

Research and development expenses

968,754,249.66

888,385,192.40

Finance expenses

870,112,601.50

1,131,025,122.06

Including: Interest expenses

742,065,949.87

907,841,772.96

Interest income

26,537,653.94

35,134,730.03

Add:Other income

296,061,195.13

154,847,121.45

Investment income

6,037.45

452,297,019.16

Including: Income from investments in associates and joint

ventures (loss is expressed by "-")

4,341,593.44

-695,341.67

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

-13,428,960.03

0.00

Loss on changes in fair value (loss is expressed by "-")

-86,233,054.18

-123,367,191.19

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

-34,827,911.59

0.00

Asset Impairment losses (loss is expressed by "-")

-233,928,751.44

-546,919,999.29

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

743,480,368.26

-5,200,932.93

Operating profit/(loss)

124,976,473.33

-803,838,732.44

Add: Non-operating income

6,240,343.02

9,684.62

Less: Non-operating expenses

50,846,499.16

19,020,577.91

Profit/(loss) before income taxes

80,370,317.19

-812,995,625.73

Less: Income tax expenses

-16,277,413.42

113,644,871.50

Net Profit/(loss)

96,647,730.61

-926,640,497.23

Classified by continuity of operations

Profit/(loss) from continuing operations

96,497.23

Classified by ownership

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

88,663,437.59

-939,315,302.79

Net Profit/(loss) attributable to minority shareholders

7,984,293.02

12,674,805.56

CONSOLIDATED INCOME STATEMENT (CONTINUED)

Year ended 31 December 2019

Expressed in Renminbi Yuan

For The Year Ended of December 31

2019

2018

Other comprehensive income,net of tax

156,601,051.39

226,220.02

Comprehensive income attributable to owners of the parent

156,161,283.69

1. Comprehensive income not be reclassified to profit or loss

10,045,132.01

-2,614,766.63

Remeasurement gains or losses of a defined benefit plan

-522,237.30

-2,766.63

Change in the fair value of other equity investments

10,567,369.31

0.00

2. Comprehensive income to be reclassified to profit or loss

146,919.38

228,050.32

Comprehensive income using the equity method

179,917.20

351,355.06

Cash flow hedge reserve

3,100,955.92

-17,190.53

Exchange differences of foreign currency financial statements

143,275,046.26

245,618,885.79

Comprehensive income attributable to minority shareholders

0.00

135,936.33

Total comprehensive income

253,248,782.00

-700,343,277.21

Including:

Total comprehensive income attributable to owners of the parent

245,264,488.98

-713,154,019.10

Total comprehensive income attributable to minority shareholders

7,810,741.89

Earnings per share

Basic earnings per share

0.06

-0.65

Diluted earnings per share

0.06

-0.65

CONSOLIDATED CASH FLOW STATEMENT

Year ended 31 December 2019

Expressed in Renminbi Yuan

For The Year Ended of December 31

2019

2018

1

CASH FLOWS FROM OPERATING ACTIVITIES

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

24,198,767,112.26

25,141,629.18

Receipts of taxes and surcharges refunds

651,451,339.42

317,543,293.11

Other cash receipts relating to operating activities

395,958,810.94

226,230,952.74

Total cash inflows from operating activities

25,246,262.62

25,743,915,875.03

Cash payments for goods and services

17,550,114.34

18,089,361.42

Cash payments to and on behalf of employees

3,766,281,452.70

3,819,875,805.53

Payments of all types of taxes and surcharges

252,464,256.86

441,552,824.15

Other cash payments relating to operating activities

666,456,842.25

883,890,214.86

Total cash outflows from operating activities

22,069,752,666.15

23,234,723,205.96

Net cash flows from operating activities

3,176,424,596.47

2,509,192,669.07

2

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments

72,742,469.17

1,655,559.36

Cash receipts from investment income

32,486,410.68

7,389.49

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

long-term assets

67,900,554.30

70,500,322.89

Net cash receipts from disposal of subsidiaries and other business units

0.00

574,172,809.98

Other cash receipts relating to investing activities

20,000,000.00

288,050,846.49

Total cash inflows from investing activities

193,129,434.15

2,490,928.21

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

term assets

2,803,587,529.88

4,311,127,824.46

Cash payments for investments

0.00

1,714,354.51

Net cash payments for acquisition of subsidiaries and other business units

0.00

20,788,047.49

Total cash outflows from investing activities

2,529.88

6,046,485,226.46

Net cash flows from investing activities

-2,610,095.73

-3,857,298.25

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED)

Year ended 31 December 2019

Expressed in Renminbi Yuan

For The Year Ended of December 31

2019

2018

3

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from investments by others

0.00

3,599,324,919.28

Cash receipts from borrowings

14,102,227.20

10,144,666.76

Other cash receipts relating to financing activities

2,117,868,426.98

0.00

Total cash inflows from financing activities

16,397,970,654.18

13,586.04

Cash repayments for debts

17,300,448.99

8,015,137.16

Cash payments for distribution of dividends or profit and interest expenses

726,372,320.64

979,533.19

Including: Dividends or profit paid to non-controlling shareholders of

subsidiaries

0.00

6,683,000.00

Other cash payments relating to financing activities

1,310,313,853.45

1,327,395,344.30

Total cash outflows from financing activities

19,336,862,623.08

10,321,988,014.65

Net cash flows from financing activities

-2,938,891,968.90

3,421,880,571.39

4

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH

EQUIVALENTS

32,026.17

91,868.57

5

NET INCREASE IN CASH AND CASH EQUIVALENTS

-2,340,794,441.99

2,466,810.78

Add: Cash and cash equivalents at beginning of the year

4,206,347,524.52

1,739,632,713.74

6

CASH AND CASH EQUIVALENTS AT END OF THE YEAR

1,865,553,082.53

4,524.52