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Press release content from PR Newswire. The AP news staff was not involved in its creation.

JCET 1H 2021 Net Profit Jumps 261%, Earnings Surpass FY 2020 Mark

August 20, 2021 GMT
(PRNewsfoto/长电科技)
(PRNewsfoto/长电科技)
(PRNewsfoto/长电科技)

Q2 2021 Financial Highlights:

  • Revenue was RMB 7.11 billion, an increase of 13.4% year on year. A record high second quarter in the company’s history.
  • Generated RMB 1.68 billion cash from operations, an increase of 67.1% year on year. With net capex investments of RMB 0.92 billion, free cash flow for the quarter was RMB 0.76 billion.
  • Net profit was RMB 0.94 billion, a record high second quarter in the company’s history.
  • Earnings per share was RMB 0.54, as compared to RMB 0.15 in Q2 2020.

1H 2021 Financial Highlights:

  • Revenue was RMB 13.82 billion, an increase of 15.4% year on year.
  • Generated RMB 2.88 billion cash from operations, an increase of 33.9% year on year. With net capex investments of RMB 1.48 billion, free cash flow for the first half of 2021 was RMB 1.40 billion.
  • Net profit was RMB 1.32 billion, an increase of 261.0% year on year,a record high in the company’s history.
  • Earnings per share was RMB 0.78, as compared to RMB 0.23 in 1H 2020.
  • Successfully completed private placement of RMB 5 billion in April 2021.

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SHANGHAI, Aug. 20, 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 half year of 2021. According to the financial report, in 1H 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 13.82 billion and net profit of RMB 1.32 billion, which achieved 15.4% and 261.0% year on year growth respectively.

Ms. Janet Chou, CFO of JCET said, “Thanks to the solid execution of our team and strong customer demand, JCET delivered another record setting quarter in 2021 with gross margin expanding 260 basis points year on year in Q2. With strong operating cash generation and robust free cash flow, we further strengthened our balance sheet.”

Along with a strong financial performance, JCET had many additional key accomplishments in Q2 2021. In April, JCET established the “Design Service Business Center” and “Automotive Electronics Business Center” to strengthen efficient interaction and synergistic development with the industry ecosystem and provide seamless and efficient full lifecycle technical service support to customers. JCET completed a private placement raising approximately RMB 5 billion to enhance capabilities in SiP, QFN, BGA and other finished chip manufacturing solutions to better meet the needs of 5G communication devices, big data, automotive electronics and other market applications. And in June, JCET completed the acquisition of Analog Devices Inc.’s Singapore test facility that enabled the continued expansion of JCET test business in Singapore and the rapid and steady advancement of its global business strategies.

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Mr. Li Zheng, CEO of JCET said, “The dynamic and innovative applications in the post-Moore era have driven the rapid upgrade of advanced packaging and backend chipset manufacturing solutions, and this gives JCET great opportunities for growth. In recent years, JCET has been partnering with our global customers, continuously increasing investment in advanced technologies, and strengthening our professional and international management and production operation systems, resulting in record revenue and net profit in the first half of 2021. In the future, we will continue to invest in R&D of advanced technology solutions, optimize operational capabilities, strengthen our professional team, and implement a talent incentive mechanism under the guidance and support of the Board of Directors, to lay a solid foundation for the sustainable development of JCET.”

About JCET:

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
















As of







Jun 30, 2021


Dec 31, 2020

ASSETS









Current assets









Currency funds






3,381


2,235

Financial assets held for trading






1,955


5

Derivative financial assets






0


8

Accounts receivable






3,661


3,846

Receivables financing






73


41

Prepayments






244


158

Other receivables






30


41

Inventories






2,919


2,946

Other current assets






108


149

Total current assets






12,371


9,429

Non-current assets









Long-term receivables






40


42

Long-term equity investments






769


949

Other equity investments






430


430

Investment properties






94


96

Fixed assets






17,349


17,790

Construction in progress






1,671


866

Right-of-use assets






664


0

Intangible assets






458


526

Goodwill






2,050


2,071

Deferred tax assets






79


128

Other non-current assets






1


1

Total non-current assets






23,605


22,899

Total assets






35,976


32,328










LIABILITIES AND EQUITY









Current liabilities









Short-term borrowings






3,197


5,288

Derivative financial liabilities






5


0

Notes payable






348


513

Accounts payable






5,059


4,499

Contract liabilities






332


173

Employee benefits payable






765


858

Taxes and surcharges payable






98


109

Other payables






336


254

Including: Dividends payable






89


0

Current portion of long-term liabilities






1,891


2,131

Other current liabilities






12


21

Total current liabilities






12,043


13,846

Non-current liabilities









Long-term borrowings






2,315


2,978

Bonds payable






999


999

Lease liabilities






561


0

Long-term payables






125


592

Long-term employee benefits payable






3


4

Deferred income






337


375

Deferred tax liabilities






132


124

Total non-current liabilities






4,472


5,072

Total liabilities






16,515


18,918

Equity









Paid-in capital






1,780


1,603

Surplus reserves






14,984


10,242

Accumulated other comprehensive income






(185)


(83)

Specialized reserves






120


120

Unappropriated profit






2,751


1,518

Total equity attributable to owners of the parent






19,450


13,400

Minority shareholders






11


10

Total equity






19,461


13,410

Total liabilities and equity






35,976


32,328

CONSOLIDATED INCOME STATEMENT (Unaudited)

RMB in millions, except share data












Three months ended


Six months ended



Jun 30,2021


Jun 30,2020


Jun 30,2021


Jun 30,2020

Revenue


7,106


6,268


13,818


11,976

Less: Cost of sales


5,793


5,271


11,430


10,232

Taxes and surcharges


22


9


42


17

Selling expenses


47


59


97


116

Administrative expenses


237


226


467


435

Research and development expenses


291


276


548


491

Finance expenses


61


156


157


303

Including: Interest expenses


90


149


200


303

Interest income


15


10


20


19

Add: Other income


56


46


97


80

Investment income / (loss)


286


(6)


284


(7)

Including: Income / (loss) from investments in associates and joint ventures


285


(6)


283


(7)

Gain / (loss) on the net position hedging


(1)


(4)


(3)


(5)

Credit impairment (loss is expressed by "-")


(4)


(11)


0


(6)

Asset impairment (loss is expressed by "-")


11


(28)


(17)


(25)

Gain / (loss) on disposal of assets


9


5


15


9

Operating profit / (loss)


1,012


273


1,453


428

Add: Non-operating income


5


0


6


0

Less: Non-operating expenses


1


2


3


8

Profit / (loss) before income taxes


1,016


271


1,456


420

Less: Income tax expenses


80


38


133


53

Net profit / (loss)


936


233


1,323


367

Classified by continuity of operations









Profit / (loss) from continuing operations


936


233


1,323


367

Classified by ownership









Net profit / (loss) attributable to owners of the parent


936


233


1,322


367

Net profit / (loss) attributable to minority shareholders


0


0


1


0

Add: Unappropriated profit at beginning of period


1,904


365


1,518


231

Cash dividends payable


89


0


89


0

Unappropriated profit at end of period (attributable to owners of the parent)


2,751


598


2,751


598

Other comprehensive income, net of tax


(148)


27


(101)


157

Comprehensive income attributable to owners of the parent


(148)


27


(101)


157

Comprehensive income not be reclassified to profit or loss


0


0


1


0

Remeasurement gains or losses of a defined benefit plan


0


0


1


0

Comprehensive income to be reclassified to profit or loss


(148)


27


(102)


157

Comprehensive income using the equity method


(20)




(21)



Cash flow hedge reserve


5


5


(5)


3

Exchange differences of foreign currency financial statements


(133)


22


(76)


154

Total comprehensive income


788


260


1,222


524

Including:









Total comprehensive income attributable to owners of the parent


788


260


1,221


524

Total comprehensive income attributable to minority shareholders


0


0


1


0

Earnings per share









Basic earnings per share


0.54


0.15


0.78


0.23

Diluted earnings per share


0.54


0.15


0.78


0.23

CONSOLIDATED CASH FLOW STATEMENT (Unaudited) RMB in millions












Three months ended


Six months ended



Jun 30,2021


Jun 30,2020


Jun 30,2021


Jun 30,2020

CASH FLOWS FROM OPERATING ACTIVITIES









Cash receipts from the sale of goods and the rendering of services


7,346


6,857


14,785


12,892

Receipts of taxes and surcharges refunds


76


200


233


423

Other cash receipts relating to operating activities


62


230


113


523

Total cash inflows from operating activities


7,484


7,287


15,131


13,838

Cash payments for goods and services


4,347


5,117


9,420


9,342

Cash payments to and on behalf of employees


1,142


829


2,270


1,788

Payments of all types of taxes and surcharges


249


142


379


232

Other cash payments relating to operating activities


69


195


181


323

Total cash outflows from operating activities


5,807


6,283


12,250


11,685

Net cash flows from operating activities


1,677


1,004


2,881


2,153

CASH FLOWS FROM INVESTING ACTIVITIES









Cash receipts from returns of investments


396


0


396


0

Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets


132


20


168


27

Total cash inflows from investing activities


528


20


564


27

Cash payments to acquire fixed assets, intangible assets and other long-term assets


1,051


659


1,648


1,337

Cash payments for investments


1,955


0


1,955


0

Total cash outflows from investing activities


3,006


659


3,603


1,337

Net cash flows from investing activities


(2,478)


(639)


(3,039)


(1,310)

CASH FLOWS FROM FINANCING ACTIVITIES









Cash proceeds from investments by others


4,966


0


4,966


0

Cash receipts from borrowings


737


2,601


2,360


8,531

Other cash receipts relating to financing activities


0


0


347


0

Total cash inflows from financing activities


5,703


2,601


7,673


8,531

Cash repayments for debts


2,867


2,393


5,529


8,141

Cash payments for distribution of dividends or profit and interest expenses


71


141


205


305

Other cash payments relating to financing activities


452


111


559


285

Total cash outflows from financing activities


3,390


2,645


6,293


8,731

Net cash flows from financing activities


2,313


(44)


1,380


(200)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS


(15)


(7)


(8)


16

NET INCREASE IN CASH AND CASH EQUIVALENTS


1,497


314


1,214


659

Add: Cash and cash equivalents at beginning of period


1,884


2,211


2,167


1,866

CASH AND CASH EQUIVALENTS AT END OF PERIOD


3,381


2,525


3,381


2,525

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SOURCE JCET Group