JCET Performance Hits Another Record High in 1H 2022, Benefiting From Global Resource Optimization

Published: Aug. 18, 2022 at 9:22 AM EDT

Q2 2022 Financial Highlights:

  • Revenue was RMB 7.46 billion, an increase of 4.9% year on year. A record high second quarter in the company's history.
  • Generated RMB 1.04 billion cash from operations. With net capex investments of RMB 0.64 billion, free cash flow for the quarter was RMB 0.4 billion.
  • Net profit was RMB 0.68 billion.
  • Earnings per share was RMB 0.39, as compared to RMB 0.54 in Q2 2021.

1H 2022 Financial Highlights:

  • Revenue was RMB 15.59 billion, an increase of 12.8% year on year, a record high in the company's history.
  • Generated RMB 2.68 billion cash from operations. With net capex investments of RMB 1.51 billion, free cash flow for the first half of 2022 was RMB 1.17 billion.
  • Net profit was RMB 1.54 billion, an increase of 16.7% year on year, a record high in the company's history.
  • Earnings per share was RMB 0.87, as compared to RMB 0.78 in 1H 2021.

SHANGHAI, Aug. 18, 2022 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, announced its financial results for the first half year of 2022. The financial report shows that in the first half of 2022, JCET achieved revenue of RMB 15.59 billion, an increase of 12.8% year on year, and net profit of RMB 1.54 billion, with an overall solid and positive performance.

(PRNewsfoto/JCET Group)
(PRNewsfoto/JCET Group)(PRNewswire)

In 2022, the global IC market showed local fluctuations, and the demand growth for individual applications slowed down. In the face of these market dynamics, JCET upheld its professional and international management strategies, leveraged its rich technology insights and global resource optimization, and focused on technologies and processes such as advanced packaging and high value-added applications, ensuring steady business operations while maintaining a solid upward development trend.

At the same time, JCET overcame the adverse impact of the recurring local COVID-19 epidemic to ensure stable and orderly production while achieving a series of milestones in innovative technology development and manufacturing expansion.

JCET increased its investment in production and technology development in the field of high-performance packaging and achieved new levels of packaging capabilities for chipsets for smartphones. At the same time, revenue from the automotive electronics and computing electronics markets increased significantly compared to the same period last year, showing that the company is continuing to optimize its product portfolio while focusing on markets of high value-added applications. With the cultivation of differentiated competitiveness, the company is building new momentum for further development. JCET's microelectronics wafer-level micro-system integration high-end manufacturing project officially started construction in July, which is an example of JCET's steady advancement of its business strategy in advanced packaging technology and high-end manufacturing. This will greatly enhance JCET's innovation and manufacturing capability to better meet the needs of global customers and to build up the future growth of the company.

Mr. Li Zheng, CEO of JCET said, "Due to the superimposed impact of the domestic epidemic and the fluctuation of the global economic situation, the overheated semiconductor IC market is likely to enter a downward cycle, especially the decline of the domestic cell phone market and consumer market. This will put certain pressure on the capacity efficiency of the company's domestic plants, and the orders from relevant markets are not optimistic. The company will continue to promote lean production and optimization of our product portfolio, and continue to actively invest in technology development and advanced production capacity in the field of high-performance packaging and testing to lay a solid foundation for future stable development."

For more information, please refer to the JCET 1H FY2022 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


















Jun 30, 2022


Dec 31, 2021

ASSETS










Current assets










  Currency funds







2,356


2,761

  Trading financial assets







3,440


2,670

  Derivative financial assets







0


5

  Accounts receivable







3,695


4,271

  Receivables financing







66


28

  Prepayments







145


183

  Other receivables







62


77

  Inventories







3,771


3,193

  Assets classified as held for sale







0


99

  Other current assets







128


130

Total current assets







13,663


13,417

Non-current assets










  Long-term receivables







37


38

  Long-term equity investments







762


770

  Other equity investments







441


418

  Investment properties







91


93

  Fixed assets







18,485


18,424

  Construction in progress







961


661

  Right-of-use assets







592


622

  Intangible assets







485


447

  Goodwill







2,130


2,023

  Deferred tax assets







183


185

  Other non-current assets







1


1

Total non-current assets







24,168


23,682

Total assets







37,831


37,099











LIABILITIES AND EQUITY  







Jun 30, 2022


Dec 31, 2021

Current liabilities










  Short-term borrowings







1,673


2,193

  Derivative financial liabilities







16


2

  Notes payable







215


579

  Accounts payable







5,288


5,298

  Contract liabilities







357


458

  Employee benefits payable







929


1,062

  Taxes and surcharges payable







180


235

  Other payables







757


414

  Liabilities classified as held for sale







0


45

  Current portion of long-term liabilities







1,068


1,052

  Other current liabilities







4


3

Total current liabilities







10,487


11,341

Non-current liabilities










  Long-term borrowings







3,767


3,751

  Lease liabilities







540


568

  Long-term employee benefits payable







7


20

  Deferred income







358


337

  Deferred tax liabilities







95


82

Total non-current liabilities







4,767


4,758

Total liabilities







15,254


16,099

Equity










  Paid-in capital







1,780


1,780

  Capital reserves







14,996


14,984

  Accumulated other comprehensive income







105


(281)

  Surplus reserves







174


174

  Unappropriated profit







5,522


4,334

Total equity attributable to owners of the parent







22,577


20,991

Minority shareholders







0


9

Total equity







22,577


21,000

Total liabilities and equity







37,831


37,099





















CONSOLIDATED INCOME STATEMENT (Unaudited)                                                                                                     




RMB in millions, except share data














Three months ended


Six months ended




Jun 30, 2022


Jun 30, 2021


Jun 30, 2022


Jun 30, 2021

Revenue



7,455


7,106


15,594


13,818

Less: Cost of sales



6,107


5,793


12,706


11,430

          Taxes and surcharges



27


22


43


42

          Selling expenses



48


47


97


97

          Administrative expenses



236


237


494


467

          Research and development expenses



315


291


638


548

          Finance expenses



(8)


61


15


157

            Including: Interest expenses



49


90


92


200

                     Interest income



9


15


16


20

Add: Other income



26


56


83


97

         Investment income / (loss)



28


286


40


284

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



(2)


285


(7)


283

         Gain / (loss) on the net position hedging



0


(1)


0


(3)

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



(17)


0


(14)


0

         Credit impairment (loss is expressed by "-")



2


(4)


(5)


0

          Asset impairment (loss is expressed by "-")



(65)


11


(64)


(17)

         Gain / (loss) on disposal of assets 



9


9


23


15

Operating profit / (loss)



713


1,012


1,664


1,453

Add: Non-operating income



1


5


6


6

Less: Non-operating expenses



1


1


1


3

Profit / (loss) before income taxes



713


1,016


1,669


1,456

Less: Income tax expenses



31


80


126


133

Net profit / (loss) 



682


936


1,543


1,323

Classified by continuity of operations










  Profit / (loss) from continuing operations



682


936


1,543


1,323

Classified by ownership










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



682


936


1,543


1,322

  Net profit / (loss) attributable to minority shareholders



0


0


0


1

Add: Unappropriated profit at beginning of period



5,196


1,904


4,335


1,518

Less: Cash dividends payable



356


89


356


89

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



5,522


2,751


5,522


2,751

Other comprehensive income, net of tax



419


(148)


386


(101)

Comprehensive income attributable to owners of the parent



419


(148)


386


(101)

Comprehensive income not be reclassified to profit or loss



0


0


0


1

  Remeasurement gains or losses of a defined benefit plan



0


0


0


1

Comprehensive income to be reclassified to profit or loss



419


(148)


386


(102)

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



(7)


(20)


(7)


(20)

  Cash flow hedge reserve



(13)


5


(18)


(5)

  Exchange differences of foreign currency financial statements



439


(133)


411


(77)

Total comprehensive income



1,101


788


1,929


1,222

  Including:










     Total comprehensive income attributable to owners of the parent



1,101


788


1,929


1,221

     Total comprehensive income attributable to minority shareholders



0


0


0


1

Earnings per share










  Basic earnings per share



0.39


0.54


0.87


0.78

  Diluted earnings per share



0.39


0.54


0.87


0.78





















CONSOLIDATED CASH FLOW STATEMENT (Unaudited)                                                                                                                                                          

RMB in millions














Three months ended


Six months ended




Jun 30, 2022


Jun 30, 2021


Jun 30, 2022


Jun 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES










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



8,184


7,346


16,999


14,785

Receipts of taxes and surcharges refunds



32


76


147


233

Other cash receipts relating to operating activities



62


62


132


113

Total cash inflows from operating activities



8,278


7,484


17,278


15,131

Cash payments for goods and services



5,766


4,347


11,612


9,420

Cash payments to and on behalf of employees



1,060


1,142


2,309


2,270

Payments of all types of taxes and surcharges



314


249


501


379

Other cash payments relating to operating activities



93


69


171


181

Total cash outflows from operating activities



7,233


5,807


14,593


12,250

Net cash flows from operating activities



1,045


1,677


2,685


2,881

CASH FLOWS FROM INVESTING ACTIVITIES










Cash receipts from returns of investments



4,160


396


5,160


396

Cash receipts from investment income



32


0


38


0

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



8


132


34


168

Net cash receipts from disposal of subsidiaries and other business units



(1)


0


27


0

Total cash inflows from investing activities



4,199


528


5,259


564

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



651


1,051


1,550


1,648

Cash payments for investments



4,310


1,955


5,960


1,955

Total cash outflows from investing activities



4,961


3,006


7,510


3,603

Net cash flows from investing activities



(762)


(2,478)


(2,251)


(3,039)

CASH FLOWS FROM FINANCING ACTIVITIES










Cash proceeds from investments by others



0


4,966


0


4,966

Cash receipts from borrowings



985


737


1,515


2,360

Other cash receipts relating to financing activities



0


0


0


347

Total cash inflows from financing activities



985


5,703


1,515


7,673

Cash repayments for debts



988


2,867


1,734


5,529

Cash payments for distribution of dividends or profit and interest expenses



49


71


90


205

Other cash payments relating to financing activities



446


452


589


559

Total cash outflows from financing activities



1,483


3,390


2,413


6,293

Net cash flows from financing activities



(498)


2,313


(898)


1,380

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS



59


(15)


57


(8)

NET INCREASE IN CASH AND CASH EQUIVALENTS



(156)


1,497


(407)


1,214

Add: Cash and cash equivalents at beginning of period



2,512


1,884


2,763


2,167

CASH AND CASH EQUIVALENTS AT END OF PERIOD



2,356


3,381


2,356


3,381

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SOURCE JCET Group

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