JCET Revenues of Q3 2024 and Q3 YTD 2024 Hit New Record High, Q3 Net Profit after Deducting Non-Recurring Items Increased by 19.5% Year-on-Year

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25 Oct, 2024, 10:25 GMT

Q3 2024 Financial Highlights：

Revenue was RMB 9.49 billion, an increase of 14.9% year-on-year and 9.8% quarter-on-quarter, a record quarter in the company's history.
Net profit attributable to owners of the parent was RMB 0.46 billion. Net profit attributable to owners of the parent after deducting non-recurring gains and losses was RMB 0.44 billion, an increase of 19.5% year-on-year.

Q3 YTD 2024 Financial Highlights：

Revenue was RMB 24.98 billion, an increase of 22.3% year-on-year, a record high in the company's history.
Net profit attributable to owners of the parent was RMB 1.08 billion, an increase of 10.6% year-on-year.
Earnings per share was RMB 0.60, as compared to RMB 0.54 in Q3 YTD 2023.

SHANGHAI, Oct. 25, 2024 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, announced its financial results for the third quarter of 2024. The financial report shows that in the third quarter of 2024, JCET achieved revenue of RMB 9.49 billion, an increase of 14.9% year-on-year, a record quarter in the company's history, and net profit attributable to owners of the parent of RMB 0.46 billion. Net profit attributable to owners of the parent after deducting non-recurring gains and losses was RMB 0.44 billion in Q3 2024, an increase of 19.5% year-on-year. In Q3 YTD 2024, JCET achieved revenue of RMB 24.98 billion, an increase of 22.3% year-on-year, a record high in the company's history, and net profit attributable to owners of the parent of RMB 1.08 billion, an increase of 10.6% year-on-year.

The operations of JCET factories have rebounded since 2024, and the company's capacity utilization rate is continuously increasing. In the first three quarters of this year, all business sector recovery has stabilized, and the company's earlier strategic layout began to contribute incremental growth. In the first three quarters, the revenues of the four major applications, including communications, consumer, computing, and automotive electronics all achieved double-digit year-on-year growth, with communication electronics achieving a significant growth of nearly 40% year-on-year. The company strengthened inventory control and supply chain management to ensure efficient circulation of capital, generating RMB 3.93 billion cash from operations in Q3 YTD 2024, a year-on-year increase of 29.7%.

JCET's acquisition of 80% equity of SanDisk (Shanghai), a global leading factory for memory chip packaging, has completed. This will further enhance the company's intelligent manufacturing and expand its market share in the memory and computing electronics. JCET microelectronics microsystem integration high-end manufacturing base has been put into use, providing one-stop IC back-end manufacturing services and addressing global customers' demand for high-performance chips.

Mr. Li Zheng, CEO of JCET, said, "JCET has actively promoted innovation in advanced packaging technology and capacity layout in recent years. Since the beginning of this year, the company business has continued to rebound, and its revenue in the first three quarters hits a new high in the company's history. JCET will continue to focus on advanced technology and high value-added markets to support sustainable development."

For more information, please refer to the JCET Q3 2024 Report.

CONSOLIDATED BALANCE SHEET (Unaudited)				RMB in millions

			Sep 30, 2024	Dec 31, 2023
ASSETS
Current assets
Currency funds			9,257	7,325
Trading financial assets			2,003	2,306
Derivative financial assets			3	4
Accounts receivable			5,916	4,185
Receivables financing			35	38
Prepayments			133	104
Other receivables			117	87
Inventories			4,740	3,195
Other current assets			514	375
Total current assets			22,718	17,619
Non-current assets
Long-term receivables			33	33
Long-term equity investments			826	695
Other equity investments			434	447
Investment properties			83	86
Fixed assets			21,431	18,744
Construction in progress			2,728	1,053
Right-of-use assets			515	563
Intangible assets			745	662
Goodwill			3,546	2,248
Long-term prepaid expenses			10	17
Deferred tax assets			493	364
Other non-current assets			57	48
Total non-current assets			30,901	24,960
Total assets			53,619	42,579

LIABILITIES AND EQUITY			Sep 30, 2024	Dec 31, 2023
Current liabilities
Short-term borrowings			1,187	1,696
Notes payable			338	223
Accounts payable			8,143	4,782
Contract liabilities			316	185
Employee benefits payable			751	781
Taxes and surcharges payable			275	167
Other payables			385	354
Current portion of long-term liabilities			4,215	1,491
Other current liabilities			1	3
Total current liabilities			15,611	9,682
Non-current liabilities
Long-term borrowings			7,331	5,777
Lease liabilities			504	530
Long-term payables			833	0
Long-term employee benefits payable			15	14
Deferred income			424	384
Deferred tax liabilities			393	0
Other non-current liabilities			28	41
Total non-current liabilities			9,528	6,746
Total liabilities			25,139	16,428
Equity
Paid-in capital			1,789	1,789
Capital reserves			15,230	15,237
Accumulated other comprehensive income			410	543
Specialized reserves			1	0
Surplus reserves			257	257
Unappropriated profit			9,137	8,239
Total equity attributable to owners of the parent			26,824	26,065
Minority shareholders			1,656	86
Total equity			28,480	26,151
Total liabilities and equity			53,619	42,579


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

	Three months ended		Nine months ended
	Sep 30, 2024	Sep 30, 2023	Sep 30, 2024	Sep 30, 2023
Revenue	9,491	8,257	24,978	20,430
Less: Cost of sales	8,331	7,071	21,748	17,596
Taxes and surcharges	21	36	56	82
Selling expenses	69	55	187	155
Administrative expenses	100	190	533	536
Research and development expenses	413	413	1,232	1,082
Finance expenses	119	26	108	77
Including: Interest expenses	105	84	297	215
Interest income	69	35	210	70
Add: Other income	39	103	125	176
Investment income / (loss)	0	(12)	(14)	(34)
Including: Income / (loss) from investments in associates and joint ventures	(14)	(12)	(43)	(34)
Gain / (loss) on changes in fair value of financial assets/liabilities	3	17	(2)	62
Credit impairment (loss is expressed by "-")	6	(2)	(1)	(3)
Asset impairment (loss is expressed by "-")	(13)	(26)	(51)	(26)
Gain / (loss) on disposal of assets	(2)	5	3	21
Operating profit / (loss)	471	551	1,174	1,098
Add: Non-operating income	0	0	1	3
Less: Non-operating expenses	1	1	3	5
Profit / (loss) before income taxes	470	550	1,172	1,096
Less: Income tax expenses	16	72	101	122
Net profit / (loss)	454	478	1,071	974
Classified by continuity of operations
Profit / (loss) from continuing operations	454	478	1,071	974
Classified by ownership
Net profit / (loss) attributable to owners of the parent	457	478	1,076	974
Net profit / (loss) attributable to minority shareholders	(3)	0	(5)	0
Add: Unappropriated profit at beginning of period	8,680	7,293	8,239	7,154
Less: Cash dividends declared	0	0	178	357
Unappropriated profit at end of period (attributable to owners of the parent）	9,137	7,771	9,137	7,771
Other comprehensive income, net of tax	(181)	(70)	(133)	280
Comprehensive income attributable to owners of the parent	(181)	(70)	(133)	280
Comprehensive income not be reclassified to profit or loss	0	(7)	(13)	10
Remeasurement gains or losses of a defined benefit plan	0	0	0	1
Change in the fair value of other equity investments	0	(7)	(13)	9
Comprehensive income to be reclassified to profit or loss	(181)	(63)	(120)	270
Exchange differences of foreign currency financial statements	(181)	(63)	(120)	270
Total comprehensive income	273	867	938	1,254
Including:
Total comprehensive income attributable to owners of the parent	276	408	943	1,254
Total comprehensive income attributable to minority shareholders	(3)	0	(5)	0
Earnings per share
Basic earnings per share	0.25	0.26	0.60	0.54
Diluted earnings per share	0.25	0.26	0.60	0.54


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)				RMB in millions

	Three months ended		Nine months ended
	Sep 30, 2024	Sep 30, 2023	Sep 30, 2024	Sep 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	9,011	7,574	25,601	20,737
Receipts of taxes and surcharges refunds	139	52	337	267
Other cash receipts relating to operating activities	92	126	375	289
Total cash inflows from operating activities	9,242	7,752	26,313	21,293
Cash payments for goods and services	6,742	5,840	17,996	14,293
Cash payments to and on behalf of employees	1,198	899	3,446	2,972
Payments of all types of taxes and surcharges	284	180	573	646
Other cash payments relating to operating activities	111	221	364	349
Total cash outflows from operating activities	8,335	7,140	22,379	18,260
Net cash flows from operating activities	907	612	3,934	3,033
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	3,600	3,601	12,650	11,881
Cash receipts from investment income	15	15	30	68
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	1	99	6	131
Total cash inflows from investing activities	3,616	3,715	12,686	12,080
Cash payments to acquire fixed assets, intangible assets and other long-term assets	1,219	845	3,089	2,434
Cash payments for investments	4,000	5,181	12,350	11,161
Net cash payments for acquisition of subsidiaries and other business units	1,520	0	1,520	0
Total cash outflows from investing activities	6,739	6,026	16,959	13,595
Net cash flows from investing activities	(3,123)	(2,311)	(4,273)	(1,515)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	0	32	776	262
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries	0	0	765	86
Cash receipts from borrowings	2,050	4,823	5,057	6,487
Total cash inflows from financing activities	2,050	4,855	5,833	6,749
Cash repayments for debts	1,048	3,723	3,011	5,464
Cash payments for distribution of dividends or profit and interest expenses	83	78	435	545
Other cash payments relating to financing activities	21	22	74	69
Total cash outflows from financing activities	1,152	3,823	3,520	6,078
Net cash flows from financing activities	898	1,032	2,313	671
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(46)	(7)	(42)	30
NET INCREASE IN CASH AND CASH EQUIVALENTS	(1,364)	(674)	1,932	2,219
Add: Cash and cash equivalents at beginning of period	10,621	5,346	7,325	2,453
CASH AND CASH EQUIVALENTS AT END OF PERIOD	9,257	4,672	9,257	4,672

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 industrial, through advanced wafer-level packaging, 2.5D/3D, System-in-Package, and reliable flip chip and wire bonding technologies. JCET Group has two R&D centers in China and Korea, eight manufacturing locations in China, Korea, and Singapore, and sales centers around the world, providing close technology collaboration and efficient supply-chain manufacturing to our global customers.

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