JCET's Global Manufacturing Strategy Produces Records for Revenue and Profit in Q3
Q3 2020 Financial Highlights:
Revenue was RMB 6.79 billion. On a comparable basis,taking into account the accounting change in revenue recognition,it was an increase of 11.2% year on year (see note).
Generated RMB 1.48 billion cash from operations,up 171.3％ year on year. With net capex investments of RMB 0.69 billion,free cash flow for the quarter was RMB 0.79 billion.
Net profit was RMB 0.40 billion,a record high in the company's history.
Earnings per share was RMB 0.25,as compared to RMB 0.05 in Q3 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 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 -- 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,"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
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 30,2019
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
113
Contract liabilities
30
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
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
33,582
CONSOLIDATED INCOME STATEMENT (Unaudited)
RMB in millions,except share data
Three months ended
Nine months ended
Sep 30,2020
Sep 30,2019
Sep 30,2019
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
1
Gain / (loss) on changes in fair value of financial assets
28
28
Credit impairment (loss is expressed by "-")
(1)
2
(7)
(6)
Asset impairment (loss is expressed by "-")
(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
3
1
Less: Non-operating expenses
10
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
1
1
Add: Unappropriated profit at beginning of period
598
(116)
231
143
Less: Other reductions
2
2
Unappropriated profit at end of period (attributable to owners
of the parent)
994
(39)
994
(39)
CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited)
RMB in millions,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)
(10)
Change in the fair value of other equity investments
(10)
(10)
Comprehensive income to be reclassified to profit or loss
(344)
241
(187)
199
Comprehensive income using the equity method
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
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 30,2019
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
2
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
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
2,157
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 30,2019
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings
1,418
2,350
9,950
10,843
Other cash receipts relating to financing activities
1,103
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
2,299
