JCET Continues Strong 2021 with Another Record High Performance in Q3

JCET Q3 2021 Financial Highlights:

Revenue was RMB 8.10 billion,an increase of 19.3% year on year. A record high third quarter in the company's history.

Generated RMB 1.91 billion cash from operations,an increase of 29.2% year on year. With net capex investments of RMB 1.27 billion,free cash flow for the quarter was RMB 0.64 billion.

Net profit was RMB 0.79 billion,a record high third quarter in the company's history.

Earnings per share was RMB 0.45,as compared to RMB 0.25 in Q3 2020.

SHANGHAI,Oct. 27,2021 -- Today,JCET Group (SSE: 600584),a leading global provider of integrated circuit (IC) manufacturing and technology services announced its financial results for the third quarter of 2021. According to the financial report,JCET achieved revenue of RMB 8.10 billion in the third quarter,an increase of 19.3% year on year,and net profit of RMB0.79 billion,a record high third quarter in the company's history.

Ms. Janet Chou,CFO of JCET said,"We delivered another quarter of record highs in revenue and profit in Q3. Our balance sheet continues to be strengthened with significant improvements in our key financial metrics. JCET's outstanding performance in 2021 is the result of the successful execution of our focused growth strategy."

Mr. Li Zheng,CEO of JCET said,"After delivering record high results in the first half of 2021,JCET continued its positive momentum of steady growth in the third quarter. In the second half of this year,JCET's global manufacturing centers continue to optimize their mass production technologies and operational efficiency. All manufacturing centers continue to enhance their R&D and innovation capabilities for advanced technologies. In particular,the XDFOI™ series of products for 3D packaging was launched in July providing industry-leading ultra-high density heterogeneous integration solutions for a wide range of global customers engaged in high performance computing. The company's development over the past 50 years has built a solid foundation for the more internationalized management strategies implemented by JCET in recent years. With the support of shareholders and the collaborative efforts of all our employees,JCET is growing together with its customers and partners and has entered a new phase of technology leadership and steady growth."

Click to view: JCET 2021 Third Quarter 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

As of

Sep 30,2021

Dec 31,2020

ASSETS

Current assets

Currency funds

2,980

2,235

Trading financial assets

1,925

5

Derivative financial assets

2

8

Accounts receivable

4,218

3,846

Receivables financing

44

41

Prepayments

336

158

Other receivables

31

41

Inventories

3,674

2,946

Other current assets

129

149

Total current assets

13,339

9,429

Non-current assets

Long-term receivables

38

42

Long-term equity investments

772

949

Other equity investments

430

430

Investment properties

93

96

Fixed assets

18,219

17,790

Construction in progress

1,015

866

Right-of-use assets

661

Intangible assets

444

526

Goodwill

2,058

2,071

Deferred tax assets

85

128

Other non-current assets

1

1

Total non-current assets

23,816

22,899

Total assets

37,155

32,328

LIABILITIES AND EQUITY

Current liabilities

Short-term borrowings

3,827

5,288

Derivative financial liabilities

17

Notes payable

422

513

Accounts payable

6,034

4,499

Contract liabilities

342

173

Employee benefits payable

916

858

Taxes and surcharges payable

139

109

Other payables

286

254

Current portion of long-term liabilities

1,357

2,131

Other current liabilities

12

21

Total current liabilities

13,352

13,846

Non-current liabilities

Long-term borrowings

2,415

2,978

Bonds payable

999

Lease liabilities

638

Long-term payables

592

Long-term employee benefits payable

4

4

Deferred income

335

375

Deferred tax liabilities

132

124

Total non-current liabilities

3,524

5,072

Total liabilities

16,876

18,918

Equity

Paid-in capital

1,780

1,603

Capital reserves

14,984

10,242

Accumulated other comprehensive income

(160)

(83)

Surplus reserves

120

120

Unappropriated profit

3,544

1,518

Total equity attributable to owners of the parent

20,268

13,400

Minority shareholders

11

10

Total equity

20,279

13,410

Total liabilities and equity

37,328

CONSOLIDATED INCOME STATEMENT (Unaudited)

RMB in millions,except share data

Three months ended

Nine months ended

Sep 30,2021

Sep 30,2020

Sep 30,2020

Revenue

8,099

6,787

21,917

18,763

Less: Cost of sales

6,576

5,631

18,006

15,863

Taxes and surcharges

16

11

58

28

Selling expenses

49

59

145

175

Administrative expenses

276

252

743

687

Research and development expenses

312

277

860

768

Finance expenses

20

179

176

482

Including: Interest expenses

70

131

270

433

Interest income

14

12

34

31

Add: Other income

38

17

135

97

Investment income / (loss)

15

(1)

299

(8)

Including: Income / (loss) from investments in associates and joint ventures

3

(1)

286

(8)

Gain / (loss) on the net position hedging

(8)

6

(11)

1

Gain / (loss) on changes in fair value of financial assets/liabilities

28

28

Credit impairment (loss is expressed by "-")

14

(1)

14

(7)

Asset impairment (loss is expressed by "-")

(34)

(52)

(25)

Gain / (loss) on disposal of assets

16

33

30

42

Operating profit / (loss)

891

460

2,344

888

Add: Non-operating income

3

6

3

Less: Non-operating expenses

8

10

11

18

Profit / (loss) before income taxes

883

453

2,339

873

Less: Income tax expenses

89

55

222

108

Net profit / (loss)

794

398

2,117

765

Classified by continuity of operations

Profit / (loss) from continuing operations

794

398

2,117

765

Classified by ownership

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

793

398

2,116

764

Net profit / (loss) attributable to minority shareholders

1

1

1

Add: Unappropriated profit at beginning of period

2,751

598

1,517

231

Less: Cash dividends payable

89

Other reductions

2

2

Unappropriated profit at end of period (attributable to owners of the parent)

3,544

994

3,544

994

Other comprehensive income,net of tax

24

(354)

(78)

(197)

Comprehensive income attributable to owners of the parent

24

(354)

(78)

(197)

Comprehensive income not be reclassified to profit or loss

(10)

1

(10)

Remeasurement gains or losses of a defined benefit plan

1

Change in the fair value of other equity investments

(10)

(10)

Comprehensive income to be reclassified to profit or loss

24

(344)

(79)

(187)

Comprehensive income using the equity method that may be reclassified to profit or loss

(21)

Cash flow hedge reserve

(4)

(1)

(9)

1

Exchange differences of foreign currency financial statements

28

(343)

(49)

(188)

Total comprehensive income

818

42

2,039

567

Including:

Total comprehensive income attributable to owners of the parent

817

42

2,038

566

Total comprehensive income attributable to minority shareholders

1

1

1

Earnings per share

Basic earnings per share

0.45

0.25

1.23

0.48

Diluted earnings per share

0.45

0.25

1.23

0.48

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)

RMB in millions

Three months ended

Nine months ended

Sep 30,2020

CASH FLOWS FROM OPERATING ACTIVITIES

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

8,048

6,468

22,834

19,360

Receipts of taxes and surcharges refunds

107

105

340

528

Other cash receipts relating to operating activities

94

244

207

767

Total cash inflows from operating activities

8,249

6,817

23,381

20,655

Cash payments for goods and services

4,995

4,241

14,415

13,584

Cash payments to and on behalf of employees

1,057

856

3,327

2,644

Payments of all types of taxes and surcharges

210

81

589

313

Other cash payments relating to operating activities

75

159

257

482

Total cash outflows from operating activities

6,337

5,337

18,588

17,023

Net cash flows from operating activities

1,912

1,480

4,793

3,632

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments

2,455

6

2,852

6

Cash receipts from investment income

13

13

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

93

38

261

65

Total cash inflows from investing activities

2,561

44

3,126

71

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

1,365

726

3,013

2,062

Cash payments for investments

2,420

4,376

Total cash outflows from investing activities

3,785

726

7,389

2,062

Net cash flows from investing activities

(1,224)

(682)

(4,263)

(1,991)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from investments by others

4,966

Cash receipts from borrowings

2,268

1,418

4,629

9,950

Other cash receipts relating to financing activities

347

Total cash inflows from financing activities

2,418

9,942

9,950

Cash repayments for debts

2,985

2,311

8,515

10,452

Cash payments for distribution of dividends or profit and interest expenses

161

120

366

425

Other cash payments relating to financing activities

212

206

771

491

Total cash outflows from financing activities

3,358

2,637

9,652

11,368

Net cash flows from financing activities

(1,090)

(1,219)

290

(1,418)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

1

(48)

(7)

(33)

NET INCREASE IN CASH AND CASH EQUIVALENTS

(401)

(469)

813

190

Add: Cash and cash equivalents at beginning of period

3,381

2,525

2,167

1,866

CASH AND CASH EQUIVALENTS AT END OF PERIOD

2,980

2,056

2,056