JCET Posts Second Consecutive Quarter with Record High in Q2 2020
Strong demand for advanced technology drives growth(Q2 2020 Financial Highlights):
Revenue was RMB 6.27 billion,a record high in the second quarter. On a comparable basis,taking into account the accounting change in revenue recognition,it was an increase of 55.3% year on year (see note).
Generated RMB 1.00 billion cash from operations,up 54.9% year on year. With net capex investments of RMB 0.64 billion,free cash flow for the quarter was RMB 0.36 billion.
Net profit was RMB 0.23 billion,a record high second quarter in the past five years.
Earnings per share was RMB 0.15,as compared to RMB -0.13 in Q2 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 0.93billionrespectively. 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 7.20billion,an increase of 55.3% over the same period last year.
SHANGHAI,Aug. 20,2020 -- Global leading semiconductor microsystem integration packaging and test provider,JCET Group (SH: 600584) reported financial results for the second quarter 2020,ended June 30th,2020. Revenue was RMB 6.27 billion and net profit was RMB 0.23 billion,both a record second quarter high in the past five years. These results show that JCET's investment in the development of advanced packaging and test technologies has begun to bear fruit.
Mr. Li Zheng,Chief Executive Officer of JCET Group,said,"Following our strong Q1 with this Q2 performance shows that JCET is benefiting from the strengths of our three global manufacturing hubs,and the continuous improvement of our operational excellence. The rapid development of the 5G communications industry and high-performance computing applications has increased the demand for advanced packaging technologies and manufacturing processes. JCET Group's global supply chain resources and strong portfolio of advanced technology combined with our world-class management team will continue to provide our global customers with industry-leading semiconductor packaging,test and design services."
Ms. Janet Chou,Chief Financial Officer of JCET Group,"JCET delivered solid second quarter results with improvement in key financial metrics. Our performance demonstrated our commitment to drive profitable growth and cash generation."
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
Jun 30,2020
Dec 31,2019
Current assets
Currency funds
2,813
2,569
Derivative financial assets
3
4
Accounts receivable
2,958
3,350
Receivables financing
59
68
Prepayments
214
188
Other receivables
12
11
Inventories
2,663
2,731
Current portion of non-current assets
137
137
Other current assets
186
501
Total current assets
9,045
9,559
Non-current assets
Long-term receivables
31
40
Long-term equity investments
986
972
Other equity investments
527
517
Investment properties
98
100
Fixed assets
18,130
17,799
Construction in progress
1,146
1,664
Intangible assets
560
587
Goodwill
2,248
2,214
Long-term prepaid expenses
1
Deferred tax assets
121
128
Other non-current assets
1
1
Total non-current assets
23,848
24,023
Total assets
32,893
33,582
CONSOLIDATED BALANCE SHEET (CONTINUED)(Unaudited)
RMB in millions
As of
LIABILITIES AND EQUITY
Jun 30,2019
Current liabilities
Short-term borrowings
6,127
9,098
Derivative financial liabilities
101
161
Notes payable
589
958
Accounts payable
3,788
4,618
Receipts in advance
113
Contract liabilities
38
Employee benefits payable
588
586
Taxes and surcharges payable
93
53
Other payables
210
235
Current portion of long term liabilities
2,590
1,827
Total current liabilities
14,124
17,649
Non-current liabilities
Long-term borrowings
3,185
1,585
Bonds payable
1,012
Long-term payables
920
1,216
Long-term employee benefits payable
1
1
Deferred income
332
337
Deferred tax liabilities
159
156
Total non-current liabilities
5,609
3,295
Total liabilities
19,733
20,944
Equity
Paid-in capital
1,603
1,603
Surplus reserves
10,242
10,242
Accumulated other comprehensive income
586
429
Specialized reserves
122
122
Unappropriated profit
598
231
Total equity attributable to owners of the parent
13,151
12,627
Minority shareholders
9
11
Total equity
13,160
12,638
Total liabilities and equity
32,582
CONSOLIDATED INCOME STATEMENT(Unaudited)
RMB in millions,except share data
Three months ended
Six months ended
Jun 30,2020
Jun 30,2019
Jun 30,2019
Revenue
6,268
4,634
11,976
9,149
Less: Cost of sales
5,271
4,149
10,232
8,298
Taxes and surcharges
9
9
17
17
Selling expenses
59
63
116
128
Administrative expenses
226
303
435
549
Research and development expenses
276
176
491
349
Finance expenses
156
186
303
434
Including: Interest expenses
149
171
303
368
Interest income
10
5
19
12
Add: Other income
46
41
80
185
Investment income/(loss)
(6)
(2)
(7)
(3)
Including: Income/(loss) from investments in
associates and joint ventures
(6)
(2)
(7)
(3)
Gain/(loss) on the net position hedging
(4)
(5)
Credit impairment (loss is expressed by"-")
(11)
(9)
(6)
(8)
Asset impairment (loss is expressed by"-")
(28)
(17)
(25)
(14)
Gain/(loss) on disposal of assets
5
7
9
7
Operating profit/(loss)
273
(232)
428
(459)
Add: Non-operating income
1
Less: Non-operating expenses
2
8
4
Profit/(loss) before income taxes
271
(232)
420
(462)
Less: Income tax expenses
38
(20)
53
(204)
Net profit/(loss)
233
(212)
367
(258)
Classified by continuity of operations
Profit/(loss) from continuing operations
233
(212)
367
(258)
Classified by ownership
Net profit/(loss) attributable to owners of the parent
232
(212)
366
(259)
Net profit/(loss) attributable to minority shareholders
1
1
1
CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited)
RMB in millions,2019
Other comprehensive income,net of tax
27
170
157
(42)
Comprehensive income attributable to owners of the
parent
27
170
157
(42)
Comprehensive income to be reclassified to profit or loss
27
170
157
(42)
Comprehensive income using the equity method
Cash flow hedge reserve
5
2
3
5
Exchange differences of foreign currency financial
statements
22
168
154
(47)
Total comprehensive income
260
(42)
524
(300)
Including:
Total comprehensive income attributable to owners of
the parent
259
(42)
524
(301)
Total comprehensive income attributable to minority
shareholders
1
1
Earnings per share
Basic earnings per share
0.15
(0.13)
0.23
(0.16)
Diluted earnings per share
0.15
(0.13)
0.23
(0.16)
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
RMB in millions
Three months ended
Six months ended
Jun 30,2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of
services
6,857
4,547
12,892
9,956
Receipts of taxes and surcharges refunds
200
74
423
158
Other cash receipts relating to operating activities
230
41
523
208
Total cash inflows from operating activities
7,287
4,662
13,838
10,322
Cash payments for goods and services
5,117
2,901
9,342
7,176
Cash payments to and on behalf of employees
829
826
1,788
1,788
Payments of all types of taxes and surcharges
142
119
232
238
Other cash payments relating to operating activities
195
168
323
303
Total cash outflows from operating activities
6,283
4,014
11,685
9,505
Net cash flows from operating activities
1,004
648
2,153
817
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments
50
66
Cash receipts from investment income
(24)
Net cash receipts from disposal of fixed assets,intangible
assets and other long-term assets
20
9
27
15
Other cash receipts relating to investing activities
20
Total cash inflows from investing activities
20
35
27
101
Cash payments to acquire fixed assets,intangible assets and
other long-term assets
659
940
1,337
1,530
Total cash outflows from investing activities
659
940
1,530
Net cash flows from investing activities
(639)
(905)
(1,310)
(1,429)
CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)
RMB in millions
Three months ended
Six months ended
Jun 30,2019
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings
2,601
2,632
8,531
8,494
Other cash receipts relating to financing activities
777
777
Total cash inflows from financing activities
2,601
3,409
8,531
9,271
Cash repayments for debts
2,393
2,379
8,141
9,206
Cash payments for distribution of dividends or profit and
interest expenses
141
136
305
437
Other cash payments relating to financing activities
111
284
285
717
Total cash outflows from financing activities
2,645
2,799
8,731
10,360
Net cash flows from financing activities
(44)
610
(200)
(1,089)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS
(7)
26
16
6
NET INCREASE IN CASH AND CASH EQUIVALENTS
314
379
659
(1,695)
Add: Cash and cash equivalents at beginning of the year
2,211
2,132
1,866
4,206
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
2,525
2,511
2,511
