JCET Innovation and Manufacturing Strategies Deliver Record High Revenue for FY2020 with Profits Twice the Total of the Last 17 Years
Fourth Quarter and Fiscal Year 2020 Financial Results:
- Fourth-quarter revenue was RMB 7.70 billion. On a comparable basis, taking into account the accounting change in revenue recognition, it was an increase of 17.6% year on year (see note 1).
- Full-year revenue was RMB 26.46 billion. On a comparable basis, taking into account the accounting change in revenue recognition, it was an increase of 28.2% year on year (see note 2).
- Fourth-quarter cash from operations was RMB 1.80 billion. With net capex investments of RMB 1.01 billion, free cash flow for the quarter was RMB 0.79 billion.
- Full-year cash from operations was RMB 5.43 billion, up 71.1% year on year. With net capex investments of RMB 3.01 billion, free cash flow for the year was RMB 2.42 billion.
- Fourth-quarter net profit was RMB 0.54 billion. Full-year net profit was RMB 1.30 billion, a record high in the company's history.
- Earnings per share was RMB 0.34 in the fourth quarter and RMB 0.81 for the full year, as compared to RMB 0.17 in Q4 2019 and RMB 0.06 in 2019 respectively.
Note 1: 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 0.92 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 8.62 billion, an increase of 17.6% over the same period last year. |
Note 2: 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 3.70 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 30.16 billion, an increase of 28.2% over the same period last year. |
SHANGHAI, April 28, 2021 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its full year financial results for the year ended December 31, 2020. According to the financial report, in 2020, JCET achieved solid and rapid growth with strong profitability, with revenue of RMB 26.46 billion and net profit of RMB 1.30 billion.
The demand for semiconductor products was historically strong in 2020, driven by the rapid development and integration of 5G and AI. JCET was poised and ready for this opportunity, delivering a record level performance for FY2020 by successfully optimizing and integrating the technology, management and production capacity resources of its domestic and international manufacturing hubs and R&D centers. JCET also leveraged its years of accumulated industry know-how and continued expanding its investment in both R&D and talent development, resulting in a year-on-year increase of 5.2% in R&D expenditure and 154 new patents. JCET's core technologies include advanced packaging technologies such as System-in-Package (SiP), high-density flip-chip and wafer-level-packaging (WLP), providing innovative solutions for 5G communication, automotive, high-performance computing, storage and other demanding applications. During FY2020, the cumulative number of JCET patents grew to 3,238. The expansion of intellectual property has created a solid foundation for future innovations that will be needed to meet the unique and complex demands of the market.
Mr. Li Zheng, CEO of JCET said, "With over 50 years of OSAT industry experiences, JCET is now firmly positioned as a tier-1 global IC manufacturing and service provider. With the support and guidance from our new board of directors, the company has successfully optimized and integrated our technology, talent and production recourses throughout our operations around the world. We have made significant investments to continue developing innovative packaging technologies as well as assembly and test manufacturing processes. These strategic initiatives led to our record breaking performance in 2020 and have also positioned us well for the opportunities that lie ahead of us in 2021!"
Ms. Janet Chou, CFO of JCET said, "We delivered record level annual revenue, profit and free cash flows in 2020. The net profit for the year was approximately twice the sum of the net profits for the 17 years since the public listing of JCET. We strengthened our balance sheet with significant improvements in our key financial metrics. We announced a common stock dividend of RMB 0.05 per share. Our focus on advanced packaging technologies is paying off."
In the post-Moore era, technical collaboration across the IC industry chain is becoming more and more important. As a leading supplier in the IC industry, JCET continues operating by its core value of "win-win cooperation" and is committed to promoting the collaborative development of the supply chain to enable the semiconductor industry to successfully overcome the challenges created by the growing demands of the market.
For more information, please refer to JCET FY2020 report.
CONSOLIDATED BALANCE SHEET (Audited) | RMB in millions | ||||
As of | |||||
ASSETS | Dec 31, 2020 | Dec 31, 2019 | |||
Current assets | |||||
Currency funds | 2,235 | 2,569 | |||
Trading financial assets | 5 | 0 | |||
Derivative financial assets | 8 | 4 | |||
Accounts receivable | 3,846 | 3,350 | |||
Receivables financing | 41 | 68 | |||
Prepayments | 158 | 188 | |||
Other receivables | 41 | 11 | |||
Inventories | 2,946 | 2,731 | |||
Current portion of non-current assets | 0 | 137 | |||
Other current assets | 149 | 501 | |||
Total current assets | 9,429 | 9,559 | |||
Non-current assets | |||||
Long-term receivables | 42 | 40 | |||
Long-term equity investments | 949 | 972 | |||
Other equity investments | 430 | 517 | |||
Investment properties | 96 | 100 | |||
Fixed assets | 17,790 | 17,799 | |||
Construction in progress | 866 | 1,664 | |||
Intangible assets | 526 | 587 | |||
Goodwill | 2,071 | 2,214 | |||
Long-term prepaid expenses | 0 | 1 | |||
Deferred tax assets | 128 | 128 | |||
Other non-current assets | 1 | 1 | |||
Total non-current assets | 22,899 | 24,023 | |||
Total assets | 32,328 | 33,582 | |||
CONSOLIDATED BALANCE SHEET (CONTINUED) (Audited) | RMB in millions | ||||
As of | |||||
LIABILITIES AND EQUITY | Dec 31, 2020 | Dec 31, 2019 | |||
Current liabilities | |||||
Short-term borrowings | 5,288 | 9,098 | |||
Derivative financial liabilities | 0 | 161 | |||
Notes payable | 513 | 958 | |||
Accounts payable | 4,499 | 4,618 | |||
Receipts in advance | 0 | 113 | |||
Contract liabilities | 173 | 0 | |||
Employee benefits payable | 858 | 586 | |||
Taxes and surcharges payable | 109 | 53 | |||
Other payables | 254 | 235 | |||
Current portion of long-term liabilities | 2,131 | 1,827 | |||
Other current liabilities | 21 | 0 | |||
Total current liabilities | 13,846 | 17,649 | |||
Non-current liabilities | |||||
Long-term borrowings | 2,978 | 1,585 | |||
Bonds payable | 999 | 0 | |||
Long-term payables | 592 | 1,216 | |||
Long-term employee benefits payable | 4 | 1 | |||
Deferred income | 375 | 337 | |||
Deferred tax liabilities | 124 | 156 | |||
Total non-current liabilities | 5,072 | 3,295 | |||
Total liabilities | 18,918 | 20,944 | |||
Equity | |||||
Paid-in capital | 1,603 | 1,603 | |||
Surplus reserves | 10,242 | 10,242 | |||
Accumulated other comprehensive income | (83) | 429 | |||
Specialized reserves | 120 | 122 | |||
Unappropriated profit | 1,518 | 231 | |||
Total equity attributable to owners of the parent | 13,400 | 12,627 | |||
Minority shareholders | 10 | 11 | |||
Total equity | 13,410 | 12,638 | |||
Total liabilities and equity | 32,328 | 33,582 | |||
CONSOLIDATED INCOME STATEMENT (Audited) | RMB in millions, except share data | |||||||
Three months ended | Year ended | |||||||
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||
Revenue | 7,701 | 7,330 | 26,464 | 23,526 | ||||
Less: Cost of sales | 6,512 | 6,388 | 22,374 | 20,895 | ||||
Taxes and surcharges | 20 | 10 | 48 | 37 | ||||
Selling expenses | 50 | 67 | 225 | 265 | ||||
Administrative expenses | 350 | 230 | 1,037 | 1,044 | ||||
Research and development expenses | 252 | 393 | 1,020 | 969 | ||||
Finance expenses | 152 | 213 | 634 | 870 | ||||
Including: Interest expenses | 136 | 153 | 569 | 742 | ||||
Interest income | 11 | 7 | 42 | 27 | ||||
Add: Other income | 88 | 79 | 185 | 296 | ||||
Investment income / (loss) | 6 | 6 | (2) | 7 | ||||
Including: Income / (loss) from investments | (3) | 3 | (11) | 4 | ||||
Gain / (loss) on the net position hedging | (5) | (14) | (4) | (13) | ||||
Gain / (loss) on changes in fair value of financial | 39 | (86) | 67 | (86) | ||||
Credit impairment (loss is expressed by "-") | 1 | (29) | (7) | (35) | ||||
Asset impairment (loss is expressed by "-") | (62) | (219) | (87) | (234) | ||||
Gain / (loss) on disposal of assets | 126 | 730 | 168 | 744 | ||||
Operating profit / (loss) | 558 | 496 | 1,446 | 125 | ||||
Add: Non-operating income | 3 | 6 | 6 | 6 | ||||
Less: Non-operating expenses | 3 | 47 | 21 | 51 | ||||
Profit / (loss) before income taxes | 558 | 455 | 1,431 | 80 | ||||
Less: Income tax expenses | 17 | 178 | 125 | (17) | ||||
Net profit / (loss) | 541 | 277 | 1,306 | 97 | ||||
Classified by continuity of operations | ||||||||
Profit / (loss) from continuing operations | 541 | 277 | 1,306 | 97 | ||||
Classified by ownership | ||||||||
Net profit / (loss) attributable to owners of the parent | 540 | 271 | 1,304 | 89 | ||||
Net profit / (loss) attributable to minority shareholders | 1 | 6 | 2 | 8 | ||||
Add: Unappropriated profit at beginning of period | 994 | (40) | 231 | 142 | ||||
Less: Other reductions | 16 | 0 | 17 | 0 | ||||
Unappropriated profit at end of period (attributable to | 1,518 | 231 | 1,518 | 231 | ||||
CONSOLIDATED INCOME STATEMENT (CONTINUED) (Audited) | RMB in millions, except share data | |||||||
Three months ended | Year ended | |||||||
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||
Other comprehensive income, net of tax | (308) | (42) | (505) | 156 | ||||
Comprehensive income attributable to owners of the | (308) | (42) | (505) | 156 | ||||
Comprehensive income not be reclassified to profit or loss | (40) | 10 | (50) | 10 | ||||
Remeasurement gains or losses of a defined benefit plan | (2) | (1) | (2) | (1) | ||||
Change in the fair value of other equity investments | (38) | 11 | (48) | 11 | ||||
Comprehensive income to be reclassified to profit or loss | (268) | (52) | (455) | 146 | ||||
Cash flow hedge reserve | (3) | (1) | (1) | 3 | ||||
Exchange differences of foreign currency financial statements | (265) | (51) | (454) | 143 | ||||
Total comprehensive income | 233 | 235 | 801 | 253 | ||||
Including: | ||||||||
Total comprehensive income attributable to owners of | 232 | 229 | 799 | 245 | ||||
Total comprehensive income attributable to minority | 1 | 6 | 2 | 8 | ||||
Earnings per share | ||||||||
Basic earnings per share | 0.34 | 0.17 | 0.81 | 0.06 | ||||
Diluted earnings per share | 0.34 | 0.17 | 0.81 | 0.06 | ||||
CONSOLIDATED CASH FLOW STATEMENT (Audited) | RMB in millions, except share data | |||||||
Three months ended | Year ended | |||||||
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Cash receipts from the sale of goods and the rendering of | 7,989 | 7,548 | 27,350 | 24,199 | ||||
Receipts of taxes and surcharges refunds | (42) | 354 | 486 | 651 | ||||
Other cash receipts relating to operating activities | 139 | 120 | 905 | 396 | ||||
Total cash inflows from operating activities | 8,086 | 8,022 | 28,741 | 25,246 | ||||
Cash payments for goods and services | 4,891 | 5,009 | 18,475 | 17,385 | ||||
Cash payments to and on behalf of employees | 1,143 | 1,067 | 3,787 | 3,766 | ||||
Payments of all types of taxes and surcharges | 186 | (158) | 499 | 253 | ||||
Other cash payments relating to operating activities | 63 | 290 | 545 | 666 | ||||
Total cash outflows from operating activities | 6,283 | 6,208 | 23,306 | 22,070 | ||||
Net cash flows from operating activities | 1,803 | 1,814 | 5,435 | 3,176 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Cash receipts from returns of investments | 6 | (30) | 12 | 73 | ||||
Cash receipts from investment income | 9 | 31 | 9 | 32 | ||||
Net cash receipts from disposal of fixed assets, intangible | 253 | 23 | 318 | 68 | ||||
Net cash receipts from disposal of subsidiaries and other | 56 | 0 | 56 | 0 | ||||
Other cash receipts relating to investing activities | 81 | 0 | 81 | 20 | ||||
Total cash inflows from investing activities | 405 | 24 | 476 | 193 | ||||
Cash payments to acquire fixed assets, intangible assets and | 1,268 | 647 | 3,330 | 2,803 | ||||
Cash payments for investments | 5 | 0 | 5 | 0 | ||||
Total cash outflows from investing activities | 1,273 | 647 | 3,335 | 2,803 | ||||
Net cash flows from investing activities | (868) | (623) | (2,859) | (2,610) | ||||
CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Audited) | RMB in millions, except share data | |||||||
Three months ended | Year ended | |||||||
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Cash receipts from borrowings | 5,775 | 3,437 | 15,725 | 14,280 | ||||
Other cash receipts relating to financing activities | 0 | 238 | 0 | 2,118 | ||||
Total cash inflows from financing activities | 5,775 | 3,675 | 15,725 | 16,398 | ||||
Cash repayments for debts | 5,738 | 4,687 | 16,190 | 17,300 | ||||
Cash payments for distribution of dividends or profit and | 189 | 57 | 614 | 726 | ||||
Including: Dividends or profit paid to non-controlling | 3 | 0 | 3 | 0 | ||||
Other cash payments relating to financing activities | 676 | 545 | 1,167 | 1,311 | ||||
Total cash outflows from financing activities | 6,603 | 5,289 | 17,971 | 19,337 | ||||
Net cash flows from financing activities | (828) | (1,614) | (2,246) | (2,939) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND | 4 | (10) | (29) | 33 | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 111 | (433) | 301 | (2,340) | ||||
Add: Cash and cash equivalents at beginning of period | 2,056 | 2,299 | 1,866 | 4,206 | ||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,167 | 1,866 | 2,167 | 1,866 | ||||
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