Fully Integrated and Optimized Strategies for Growth Propel JCET to Quarterly Highs for Revenue and Profit in Q1 2021
Q1 2021 financial highlights:
- Revenue was RMB 6.71 billion. It was an increase of 17.6% year on year and a record high first quarter in the company's history.
- Generated RMB 1.20 billion cash from operations, up 4.9% year on year. With net capex investments of RMB 0.56 billion, free cash flow for the quarter was RMB 0.64 billion.
- Net profit was RMB 0.39 billion. A record high first quarter in the company's history with 188.7% year on year growth.
- Earnings per share was RMB 0.24, as compared to RMB 0.08 in Q1 2020.
SHANGHAI, April 28, 2021 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first quarter of 2021 ended March 31, 2021. According to the financial report, in Q1 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 6.71 billion and net profit of RMB 0.39 billion, which achieved 17.6% and 188.7% year on year growth respectively
In 2020, JCET played on its strengths of unparalleled industry insights and strategies, promoted development with innovation, and improved efficiency led by a world class management team. After nearly two years of resource optimization and integration, JCET's operations are now running in their optimum mode. With a concise development strategy and roadmap in place, as well as a team driven by passion to win, JCET has constructed a solid foundation for growth in 2021.
Mr. Li Zheng, CEO of JCET said, "After reaching new highs in financial performance for 2020, including a net profit more than doubled of the previous 17 years' combined, JCET's earnings and revenue for the first quarter of 2021 again set new records year-over-year. Our continued excellence in R&D, manufacturing and strategic management is the key to our success and positions us well for even better results in 2021."
Ms. Janet Chou, CFO of JCET said: "We achieved record quarterly revenue and profitability. Our gross margin expanded 2.9 percentage points year over year. Our debt leverage ratio decreased to below 2.0. We delivered RMB 0.64 billion free cash flow which demonstrated the strength of our business model. Our outstanding performance reflects solid execution of our growth strategy."
Recently, with a strong recovery underway in the automotive market and an increased demand for deeper collaborative design within the industry supply chain, JCET announced the official opening of its Automotive Electronics Business Center and Design Services Business Center to further enhance the technology innovation advantage. The investment of resources into these two new business units demonstrates JCET's commitment to promoting collaborative and synergistic development across the IC industry and further strengthens its position for continued growth.
For more information, please refer to JCET Q1FY2021 report.
CONSOLIDATED BALANCE SHEET (Unaudited) | RMB in millions | ||||
As of | |||||
ASSETS | Mar 31, 2021 | Dec 31, 2020 | |||
Current assets | |||||
Currency funds | 1,913 | 2,235 | |||
Trading financial assets | 5 | 5 | |||
Derivative financial assets | 0 | 8 | |||
Accounts receivable | 3,458 | 3,846 | |||
Receivables financing | 58 | 41 | |||
Prepayments | 190 | 158 | |||
Other receivables | 26 | 41 | |||
Inventories | 2,650 | 2,946 | |||
Other current assets | 83 | 149 | |||
Total current assets | 8,383 | 9,429 | |||
Non-current assets | |||||
Long-term receivables | 40 | 42 | |||
Long-term equity investments | 948 | 949 | |||
Other equity investments | 432 | 430 | |||
Investment properties | 95 | 96 | |||
Fixed assets | 18,065 | 17,790 | |||
Construction in progress | 689 | 866 | |||
Right-of-use assets | 709 | 0 | |||
Intangible assets | 477 | 526 | |||
Goodwill | 2,086 | 2,071 | |||
Deferred tax assets | 106 | 128 | |||
Other non-current assets | 1 | 1 | |||
Total non-current assets | 23,648 | 22,899 | |||
Total assets | 32,031 | 32,328 | |||
CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited) | RMB in millions | ||||
As of | |||||
LIABILITIES AND EQUITY | Mar 31, 2021 | Dec 31, 2020 | |||
Current liabilities | |||||
Short-term borrowings | 4,477 | 5,288 | |||
Derivative financial liabilities | 7 | 0 | |||
Notes payable | 449 | 513 | |||
Accounts payable | 4,155 | 4,499 | |||
Contract liabilities | 271 | 173 | |||
Employee benefits payable | 664 | 858 | |||
Taxes and surcharges payable | 135 | 109 | |||
Other payables | 232 | 254 | |||
Current portion of long-term liabilities | 2,474 | 2,131 | |||
Other current liabilities | 315 | 21 | |||
Total current liabilities | 13,179 | 13,846 | |||
Non-current liabilities | |||||
Long-term borrowings | 2,446 | 2,978 | |||
Bonds payable | 999 | 999 | |||
Lease liabilities | 597 | 0 | |||
Long-term payables | 487 | 592 | |||
Long-term employee benefits payable | 7 | 4 | |||
Deferred income | 344 | 375 | |||
Deferred tax liabilities | 129 | 124 | |||
Total non-current liabilities | 5,009 | 5,072 | |||
Total liabilities | 18,188 | 18,918 | |||
Equity | |||||
Paid-in capital | 1,603 | 1,603 | |||
Surplus reserves | 10,242 | 10,242 | |||
Accumulated other comprehensive income | (36) | (83) | |||
Specialized reserves | 120 | 120 | |||
Unappropriated profit | 1,904 | 1,518 | |||
Total equity attributable to owners of the parent | 13,833 | 13,400 | |||
Minority shareholders | 10 | 10 | |||
Total equity | 13,843 | 13,410 | |||
Total liabilities and equity | 32,031 | 32,328 | |||
CONSOLIDATED INCOME STATEMENT (Unaudited) | RMB in millions, except share data | ||||
Three months ended | |||||
Mar 31, 2021 | Mar 31, 2020 | ||||
Revenue | 6,712 | 5,708 | |||
Less: Cost of sales | 5,636 | 4,961 | |||
Taxes and surcharges | 20 | 8 | |||
Selling expenses | 49 | 57 | |||
Administrative expenses | 230 | 209 | |||
Research and development expenses | 258 | 215 | |||
Finance expenses | 96 | 147 | |||
Including: Interest expenses | 110 | 154 | |||
Interest income | 5 | 9 | |||
Add: Other income | 41 | 34 | |||
Investment income / (loss) | (2) | (1) | |||
Including: Income / (loss) from investments | (2) | (1) | |||
Gain / (loss) on the net position hedging | (2) | (1) | |||
Credit impairment (loss is expressed by "-") | 4 | 5 | |||
Asset impairment (loss is expressed by "-") | (28) | 3 | |||
Gain / (loss) on disposal of assets | 6 | 4 | |||
Operating profit / (loss) | 442 | 155 | |||
Less: Non-operating expenses | 2 | 6 | |||
Profit / (loss) before income taxes | 440 | 149 | |||
Less: Income tax expenses | 53 | 15 | |||
Net profit / (loss) | 387 | 134 | |||
Classified by continuity of operations | |||||
Profit / (loss) from continuing operations | 387 | 134 | |||
Classified by ownership | |||||
Net profit / (loss) attributable to owners of the | 386 | 134 | |||
Net profit / (loss) attributable to minority shareholders | 1 | 0 | |||
Add: Unappropriated profit at beginning of period | 1,518 | 231 | |||
Unappropriated profit at end of period (attributable to | 1,904 | 365 | |||
CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited) | RMB in millions, except share data | |||
Three months ended | ||||
Mar 31, 2021 | Mar 31, 2020 | |||
Other comprehensive income, net of tax | 47 | 131 | ||
Comprehensive income attributable to owners of the | 47 | 131 | ||
Comprehensive income not be reclassified to profit or loss | 1 | 0 | ||
Remeasurement gains or losses of a defined benefit | 1 | 0 | ||
Comprehensive income to be reclassified to profit or loss | 46 | 131 | ||
Cash flow hedge reserve | (10) | (2) | ||
Exchange differences of foreign currency financial | 56 | 133 | ||
Total comprehensive income | 434 | 265 | ||
Including: | ||||
Total comprehensive income attributable to owners | 433 | 265 | ||
Total comprehensive income attributable to minority | 1 | 0 | ||
Earnings per share | ||||
Basic earnings per share | 0.24 | 0.08 | ||
Diluted earnings per share | 0.24 | 0.08 | ||
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) | RMB in millions | ||||
Three months ended | |||||
Mar 31, 2021 | Mar 31, 2020 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Cash receipts from the sale of goods and the rendering of | 7,439 | 6,035 | |||
Receipts of taxes and surcharges refunds | 157 | 223 | |||
Other cash receipts relating to operating activities | 51 | 293 | |||
Total cash inflows from operating activities | 7,647 | 6,551 | |||
Cash payments for goods and services | 5,073 | 4,225 | |||
Cash payments to and on behalf of employees | 1,128 | 959 | |||
Payments of all types of taxes and surcharges | 130 | 90 | |||
Other cash payments relating to operating activities | 112 | 128 | |||
Total cash outflows from operating activities | 6,443 | 5,402 | |||
Net cash flows from operating activities | 1,204 | 1,149 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Net cash receipts from disposal of fixed assets, intangible | 36 | 7 | |||
Total cash inflows from investing activities | 36 | 7 | |||
Cash payments to acquire fixed assets, intangible assets | 597 | 678 | |||
Total cash outflows from investing activities | 597 | 678 | |||
Net cash flows from investing activities | (561) | (671) | |||
CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited) | RMB in millions | ||||
Three months ended | |||||
Mar 31, 2021 | Mar 31, 2020 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Cash receipts from borrowings | 1,623 | 5,931 | |||
Other cash receipts relating to financing activities | 347 | 0 | |||
Total cash inflows from financing activities | 1,970 | 5,931 | |||
Cash repayments for debts | 2,662 | 5,748 | |||
Cash payments for distribution of dividends or profit and | 134 | 164 | |||
Other cash payments relating to financing activities | 107 | 174 | |||
Total cash outflows from financing activities | 2,903 | 6,086 | |||
Net cash flows from financing activities | (933) | (155) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 7 | 22 | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | (283) | 345 | |||
Add: Cash and cash equivalents at beginning of period | 2,167 | 1,866 | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,884 | 2,211 | |||
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