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JCET Q1 2024 Revenue and Net Profit Achieve Double-digit Year-on-Year Growth

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4 weeks ago

April 24, 2024

Q1 2024 Financial Highlights:

Revenue was RMB 6.84 billion, an increase of 16.8% year-on-year.
Net profit was RMB 0.13 billion, an increase of 21.7% year-on-year.
Generated RMB 1.37 billion cash from operations. With net capex investments of RMB 0.93 billion, free cash flow for the quarter was RMB 0.44 billion.
Earnings per share was RMB 0.08, as compared to RMB 0.06 in Q1 2023

SHANGHAI, April 24, 2024 /PRNewswire/ — JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, today announced its financial results for the first quarter of 2024. According to the financial report, in Q1 2024 JCET achieved revenue of RMB 6.84 billion, an increase of 16.8% year-on-year, and net profit of RMB 0.13 billion, an increase of 21.7% year-on-year. The company’s revenue has achieved year-on-year growth for two consecutive quarters.

JCET demonstrates continued success in high-performance advanced packaging and its core applications. Since the second half of 2023, customer demand has gradually recovered and the company’s business performance has continuously rebounded. In the first quarter of this year, JCET continued the trend of steady development, with a healthy inventory turnover. Multiple business fields including communication electronics, computing electronics, and consumer electronics achieved growth compared to the same period last year. The company has strategically increased R&D investment in advanced technology, resulting in stable high-volume manufacturing (HVM) of its multi-dimensional fan-out heterogeneous integration XDFOI technology across multiple JCET factories. This technology offers advanced chiplet packaging solutions for global customers, addressing market demands in high-performance computing (HPC) and high bandwidth memory (HBM).

With a focus on future development, JCET has strengthened its core competitiveness by increasing the capital of its wholly-owned subsidiary, JCET Management Co., Ltd., by RMB 4.5 billion. Doing so further refines its business strategy in automotive electronics, memory and computing electronics.

Mr. Li Zheng, CEO of JCET, said, “JCET has maintained steady business performance in the first quarter of 2024 with double-digit year-on-year growth. As the semiconductor market rebounds, JCET is accelerating production capacity release and fostering joint innovation with customers in high-performance memory, high-performance computing, and high-density power management. These efforts position JCET to play an even more prominent role in the global semiconductor industry.”

For more information, please refer to the JCET Q1 2024 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

	Mar 31, 2024	Dec 31, 2023
ASSETS
Current assets
Currency funds	9,977	7,325
Trading financial assets	1,752	2,306
Derivative financial assets	0	4
Accounts receivable	3,577	4,185
Receivables financing	49	38
Prepayments	135	104
Other receivables	109	87
Inventories	3,222	3,195
Other current assets	353	375
Total current assets	19,174	17,619
Non-current assets
Long-term receivables	32	33
Long-term equity investments	677	695
Other equity investments	442	447
Investment properties	85	86
Fixed assets	18,563	18,744
Construction in progress	1,220	1,053
Right-of-use assets	543	563
Intangible assets	662	662
Goodwill	2,251	2,248
Long-term prepaid expenses	15	17
Deferred tax assets	362	364
Other non-current assets	84	48
Total non-current assets	24,936	24,960
Total assets	44,110	42,579

LIABILITIES AND EQUITY	Mar 31, 2024	Dec 31, 2023
Current liabilities
Short-term borrowings	463	1,696
Derivative financial liabilities	2	0
Notes payable	307	223
Accounts payable	4,508	4,782
Contract liabilities	129	185
Employee benefits payable	646	781
Taxes and surcharges payable	180	167
Other payables	377	354
Current portion of long-term liabilities	1,538	1,491
Other current liabilities	2	3
Total current liabilities	8,152	9,682
Non-current liabilities
Long-term borrowings	7,940	5,777
Lease liabilities	504	530
Long-term payables	4	0
Long-term employee benefits payable	15	14
Deferred income	390	384
Other non-current liabilities	36	41
Total non-current liabilities	8,889	6,746
Total liabilities	17,041	16,428
Equity
Paid-in capital	1,789	1,789
Capital reserves	15,244	15,237
Accumulated other comprehensive income	555	543
Specialized reserves	1	0
Surplus reserves	257	257
Unappropriated profit	8,374	8,239
Total equity attributable to owners of the parent	26,220	26,065
Minority shareholders	849	86
Total equity	27,069	26,151
Total liabilities and equity	44,110	42,579


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

	Three months ended
	Mar 31, 2024	Mar 31, 2023
Revenue	6,842	5,860
Less: Cost of sales	6,007	5,166
Taxes and surcharges	13	20
Selling expenses	54	49
Administrative expenses	224	171
Research and development expenses	381	309
Finance expenses	8	57
Including: Interest expenses	93	64
Interest income	61	9
Add: Other income	39	32
Investment income / (loss)	(10)	2
Including: Income / (loss) from investments in associates and joint ventures	(17)	(12)
Gain / (loss) on changes in fair value of financial assets/liabilities	(5)	8
Credit impairment (loss is expressed by “-“)	7	5
Asset impairment (loss is expressed by “-“)	(18)	6
Gain / (loss) on disposal of assets	3	3
Operating profit / (loss)	171	144
Add: Non-operating income	1	0
Less: Non-operating expenses	0	3
Profit / (loss) before income taxes	172	141
Less: Income tax expenses	38	31
Net profit / (loss)	134	110
Classified by continuity of operations
Profit / (loss) from continuing operations	134	110
Classified by ownership
Net profit / (loss) attributable to owners of the parent	135	110
Net profit / (loss) attributable to minority shareholders	(1)	0
Add: Unappropriated profit at beginning of period	8,239	7,154
Unappropriated profit at end of period (attributable to owners of the parent）	8,374	7,264
Other comprehensive income, net of tax	12	(131)
Comprehensive income attributable to owners of the parent	12	(131)
Comprehensive income not be reclassified to profit or loss	(4)	11
Remeasurement gains or losses of a defined benefit plan	0	1
Change in the fair value of other equity investments	(5)	10
Comprehensive income to be reclassified to profit or loss	17	(142)
Exchange differences of foreign currency financial statements	17	(142)
Total comprehensive income	146	(21)
Including:
Total comprehensive income attributable to owners of the parent	147	(21)
Total comprehensive income attributable to minority shareholders	(1)	0
Earnings per share
Basic earnings per share	0.08	0.06
Diluted earnings per share	0.08	0.06


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)		RMB in millions

	Three months ended
	Mar 31, 2024	Mar 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	7,806	6,984
Receipts of taxes and surcharges refunds	117	94
Other cash receipts relating to operating activities	102	53
Total cash inflows from operating activities	8,025	7,131
Cash payments for goods and services	5,176	4,385
Cash payments to and on behalf of employees	1,192	1,194
Payments of all types of taxes and surcharges	92	212
Other cash payments relating to operating activities	192	106
Total cash outflows from operating activities	6,652	5,897
Net cash flows from operating activities	1,373	1,234
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	4,250	3,930
Cash receipts from investment income	13	14
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	3	26
Total cash inflows from investing activities	4,266	3,970
Cash payments to acquire fixed assets, intangible assets and other long-term assets	933	839
Cash payments for investments	3,700	2,780
Total cash outflows from investing activities	4,633	3,619
Net cash flows from investing activities	(367)	351
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	770	0
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries	765	0
Cash receipts from borrowings	2,279	347
Total cash inflows from financing activities	3,049	347
Cash repayments for debts	1,306	985
Cash payments for distribution of dividends or profit and interest expenses	80	53
Other cash payments relating to financing activities	19	33
Total cash outflows from financing activities	1,405	1,071
Net cash flows from financing activities	1,644	(724)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	2	(8)
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,652	853
Add: Cash and cash equivalents at beginning of period	7,325	2,453
CASH AND CASH EQUIVALENTS AT END OF PERIOD	9,977	3,306