JCET Hits New Highs for Performance in Q3, High-Performance Packaging Technology Opens New Opportunities for Semiconductor Back-end Manufacturing

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27 Oct, 2022, 12:23 GMT

Q3 2022 Financial Highlights：

Revenue was RMB 9.18 billion, an increase of 13.4% year-on-year. A record high third quarter in the company's history.
Generated RMB 1.70 billion cash from operations. With net capex investments of RMB 1.07 billion, free cash flow for the quarter was RMB 0.63 billion.
Net profit was RMB 0.91 billion, a record high third quarter in the company's history.
Earnings per share was RMB 0.51, as compared to RMB 0.45 in Q3 2021.

Q3 YTD 2022 Financial Highlights：

Revenue was RMB 24.78 billion, an increase of 13.1% year-on-year, a record high in the company's history.
Generated RMB 4.38 billion cash from operations. With net capex investments of RMB 2.58 billion, free cash flow for the first three quarters of 2022 was RMB 1.80 billion.
Net profit was RMB 2.45 billion, a record high in the company's history.
Earnings per share was RMB 1.38, as compared to RMB 1.23 in Q3 YTD 2021.

SHANGHAI, Oct. 27, 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 third quarter of 2022. The financial report shows that in the third quarter, JCET achieved revenue of RMB 9.18 billion, an increase of 13.4% year-on-year, and net profit of RMB 0.91 billion, an increase of 14.6% year-on-year, a record high third quarter in the company's history.

In recent years, JCET leverages its international and domestic "dual circulation" model, constantly optimizes the product structure and its business proportion, flexibly adjusts the order structure and capacity layout, and enhances its ability to withstand cyclical fluctuations.

JCET accelerated the research and development of high-performance packaging and testing technologies including 2.5D/3D chiplet integration, and the introduction of customer products. The company strengthened the development of high-value added markets such as automotive electronics, computing electronics and 5G communications, and enhanced value-added services such as high-end testing and design services. The related revenue and proportion increased rapidly. Among them, the company's advanced packaging related revenue, which mainly includes high-density system level packaging technology, large size flip chip technology and fan-out wafer level packaging technology increased by 21% year-on-year in the first three quarters. The revenue related to automotive electronics and computing electronics increased 59% year-on-year in the first three quarters. At the same time, the company's overseas factories grew strongly, and through deepening lean production and strengthening cost control, the company overcame the trend and achieved record high growth in the third quarter. The company continued to improve the management of working capital, stably produced abundant cash flow, and laid a solid foundation for sustainable development in the future.

At the same time, the company makes great efforts in innovation, cooperates with the industrial supply chain, continuously improves talent incentives, employee care and other measures, practices corporate social responsibility, and stimulates the cohesion of all employees. The company launched its first employee stock ownership plan and stock option incentive plan since its public listing, reflecting the firm confidence of all its employees in the long-term development of the company.

Mr. Li Zheng, CEO of JCET said, "In recent years, JCET has successfully introduced the mass production of high-density high-performance packaging technology to many of the world's leading IC manufacturers, providing a solid foundation for the company to expand its market share in advanced technology and solidify its steady growth. In the first three quarters of this year, the revenue and profit from JCET's high-density system-level packaging technology and fan-out wafer level packaging technology increased significantly compared with the same period last year, reflecting the significant growth in the large-scale application of semiconductor heterogeneous integrated packaging in computers, new energy vehicles, smart cars, intelligent manufacturing, and other fields. JCET will further increase its resource investment in relevant technologies and markets and is confident to continue strengthening its leading position in the global high-performance packaging market."

Click to view: JCET 2022 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

				Sep 30, 2022	Dec 31, 2021
ASSETS
Current assets
Currency funds				2,412	2,761
Trading financial assets				4,151	2,670
Derivative financial assets				0	5
Accounts receivable				5,043	4,271
Receivables financing				98	28
Prepayments				205	183
Other receivables				72	77
Inventories				4,157	3,193
Assets classified as held for sale				0	99
Other current assets				132	130
Total current assets				16,270	13,417
Non-current assets
Long-term receivables				35	38
Long-term equity investments				764	770
Other equity investments				434	418
Investment properties				90	93
Fixed assets				19,088	18,424
Construction in progress				1,107	661
Right-of-use assets				597	622
Intangible assets				484	447
Goodwill				2,253	2,023
Deferred tax assets				179	185
Other non-current assets				1	1
Total non-current assets				25,032	23,682
Total assets				41,302	37,099

LIABILITIES AND EQUITY				Sep 30, 2022	Dec 31, 2021
Current liabilities
Short-term borrowings				1,885	2,193
Derivative financial liabilities				27	2
Notes payable				312	579
Accounts payable				6,700	5,298
Contract liabilities				332	458
Employee benefits payable				1,023	1,062
Taxes and surcharges payable				207	235
Other payables				498	414
Liabilities classified as held for sale				0	45
Current portion of long-term liabilities				2,096	1,052
Other current liabilities				4	3
Total current liabilities				13,084	11,341
Non-current liabilities
Long-term borrowings				3,375	3,751
Lease liabilities				543	568
Long-term employee benefits payable				8	20
Deferred income				351	337
Deferred tax liabilities				79	82
Total non-current liabilities				4,356	4,758
Total liabilities				17,440	16,099
Equity
Paid-in capital				1,780	1,780
Capital reserves				15,016	14,984
Less: Treasury shares				(89)	0
Accumulated other comprehensive income				550	(281)
Surplus reserves				174	174
Unappropriated profit				6,431	4,334
Total equity attributable to owners of the parent				23,862	20,991
Minority shareholders				0	9
Total equity				23,862	21,000
Total liabilities and equity				41,302	37,099


CONSOLIDATED INCOME STATEMENT (Unaudited)			RMB in millions, except share data

	Three months ended			Nine months ended
	Sep 30, 2022	Sep 30, 2021		Sep 30, 2022	Sep 30, 2021
Revenue	9,184	8,099		24,778	21,917
Less: Cost of sales	7,616	6,576		20,323	18,006
Taxes and surcharges	26	16		69	58
Selling expenses	45	49		142	145
Administrative expenses	312	276		805	743
Research and development expenses	343	312		980	860
Finance expenses	(26)	20		(11)	176
Including: Interest expenses	51	70		143	270
Interest income	5	14		21	34
Add: Other income	55	38		138	135
Investment income / (loss)	25	15		65	299
Including: Income / (loss) from investments in associates and joint ventures	1	3		(6)	286
Gain / (loss) on the net position hedging	0	(8)		0	(11)
Gain / (loss) on changes in fair value of financial assets/liabilities	(25)	0		(40)	0
Credit impairment (loss is expressed by "-")	22	14		17	14
Asset impairment (loss is expressed by "-")	(61)	(34)		(125)	(52)
Gain / (loss) on disposal of assets	18	16		41	30
Operating profit / (loss)	902	891		2,566	2,344
Add: Non-operating income	40	0		46	6
Less: Non-operating expenses	0	8		1	11
Profit / (loss) before income taxes	942	883		2,611	2,339
Less: Income tax expenses	33	89		159	222
Net profit / (loss)	909	794		2,452	2,117
Classified by continuity of operations
Profit / (loss) from continuing operations	909	794		2,452	2,117
Classified by ownership
Net profit / (loss) attributable to owners of the parent	909	793		2,452	2,116
Net profit / (loss) attributable to minority shareholders	0	1		0	1
Add: Unappropriated profit at beginning of period	5,522	2,751		4,335	1,517
Less: Cash dividends payable	0	0		356	89
Unappropriated profit at end of period (attributable to owners of the parent）	6,431	3,544		6,431	3,544
Other comprehensive income, net of tax	446	24		832	(78)
Comprehensive income attributable to owners of the parent	446	24		832	(78)
Comprehensive income not be reclassified to profit or loss	(14)	0		(14)	1
Remeasurement gains or losses of a defined benefit plan	0	0		0	1
Change in the fair value of other equity investments	(14)	0		(14)	0
Comprehensive income to be reclassified to profit or loss	460	24		846	(79)
Comprehensive income using the equity method that may be reclassified to profit or loss	7	0		0	(21)
Cash flow hedge reserve	(9)	(4)		(26)	(9)
Exchange differences of foreign currency financial statements	462	28		872	(49)
Total comprehensive income	1,355	818		3,284	2,039
Including:
Total comprehensive income attributable to owners of the parent	1,355	817		3,284	2,038
Total comprehensive income attributable to minority shareholders	0	1		0	1
Earnings per share
Basic earnings per share	0.51	0.45		1.38	1.23
Diluted earnings per share	0.51	0.45		1.38	1.23


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)					RMB in millions

	Three months ended			Nine months ended
	Sep 30, 2022	Sep 30, 2021		Sep 30, 2022	Sep 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	8,201	8,048		25,200	22,834
Receipts of taxes and surcharges refunds	126	107		273	340
Other cash receipts relating to operating activities	87	94		218	207
Total cash inflows from operating activities	8,414	8,249		25,691	23,381
Cash payments for goods and services	5,534	4,995		17,146	14,415
Cash payments to and on behalf of employees	948	1,057		3,257	3,327
Payments of all types of taxes and surcharges	193	210		694	589
Other cash payments relating to operating activities	43	75		214	257
Total cash outflows from operating activities	6,718	6,337		21,311	18,588
Net cash flows from operating activities	1,696	1,912		4,380	4,793
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	3,390	2,455		8,550	2,852
Cash receipts from investment income	17	13		55	13
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	76	93		110	261
Net cash receipts from disposal of subsidiaries and other business units	3	0		30	0
Total cash inflows from investing activities	3,486	2,561		8,745	3,126
Cash payments to acquire fixed assets, intangible assets and other long-term assets	1,138	1,365		2,688	3,013
Cash payments for investments	4,101	2,420		10,061	4,376
Total cash outflows from investing activities	5,239	3,785		12,749	7,389
Net cash flows from investing activities	(1,753)	(1,224)		(4,004)	(4,263)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	0	0		0	4,966
Cash receipts from borrowings	1,446	2,268		2,961	4,629
Other cash receipts relating to financing activities	0	0		0	347
Total cash inflows from financing activities	1,446	2,268		2,961	9,942
Cash repayments for debts	796	2,985		2,530	8,515
Cash payments for distribution of dividends or profit and interest expenses	405	161		495	366
Other cash payments relating to financing activities	169	212		758	771
Total cash outflows from financing activities	1,370	3,358		3,783	9,652
Net cash flows from financing activities	76	(1,090)		(822)	290
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	37	1		95	(7)
NET INCREASE IN CASH AND CASH EQUIVALENTS	56	(401)		(351)	813
Add: Cash and cash equivalents at beginning of period	2,356	3,381		2,763	2,167
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,412	2,980		2,412	2,980