JCET Q2 2024 Net Profit Attributable to the Parent Increased by 258% Quarter-on-Quarter, Hitting a Record High for Revenue

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Q2 2024 Financial Highlights:

  • Revenue was RMB 8.64 billion, an increase of 36.9% year-on-year and 26.3% quarter-on-quarter. A record high Q2 in the company’s history.
  • Generated RMB 1.65 billion cash from operations. With net capex investments of RMB 0.93 billion, free cash flow for the quarter was RMB 0.72 billion.
  • Net profit attributable to owners of the parent was RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter.
  • Earnings per share was RMB 0.27, as compared to RMB 0.22 in Q2 2023.

1H 2024 Financial Highlights:

  • Revenue was RMB 15.49 billion, an increase of 27.2% year-on-year.
  • Generated RMB 3.03 billion cash from operations. With net capex investments of RMB 1.87 billion, free cash flow for the first half of 2024 was RMB 1.16 billion.
  • Net profit attributable to owners of the parent was RMB 0.62 billion, an increase of 25.0% year-on-year.
  • Earnings per share was RMB 0.35, as compared to RMB 0.28 in 1H 2023.

SHANGHAI, Aug. 23, 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 first half year of 2024. The financial report shows that in the first half of 2024, JCET achieved revenue of RMB 15.49 billion, and net profit attributable to owners of the parent of RMB 0.62 billion, both increased over 25%. In Q2 2024 JCET achieved revenue of RMB 8.64 billion, an increase of 36.9% year-on-year, a record high Q2 in the company’s history, and net profit attributable to owners of the parent of RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter, generating RMB 1.65 billion cash from operations.

During the reporting period, the company’s capacity utilization has significantly increased, with enlarged investment to expand production capacity of core production lines. In the first half of the year, the revenue of communications, computing, and consumer electronics businesses increased respectively by 48%, 23%, and 33% year-on-year. The company is consistently strengthening the research and development in advanced packaging technologies, with R&D investment of RMB 0.82 billion in 1H 2024, a year-on-year increase of 22.4%.

JCET is also actively promoting strategic projects to enhance its smart manufacturing. After two years construction, the new advanced packaging factory “JCET Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Base” with an area of over 130,000 square meters is progressing with equipment mobilization. The new automotive chip back-end manufacturing base has completed building the factory structure. The acquisition of a high-density memory chip packaging factory has obtained necessary approvals, and the project is progressing towards completion.

Mr. Li Zheng, CEO of JCET, said, “JCET actively promotes innovative applications of advanced packaging technologies and continues to expand its production capacity in China, Singapore and South Korea, with steady growth in performance in the first half of 2024. The company will continue to increase investment in R&D and strategic projects, strengthen innovation cooperation in the industrial chain and sustainable development, and create higher value for shareholders, customers, employees and society.”

For more information, please refer to the JCET 1H FY2024 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 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.

CONSOLIDATED BALANCE SHEET (Unaudited)RMB in millions
Jun 30, 2024Dec 31, 2023
ASSETS
Current assets
  Currency funds10,6217,325
  Trading financial assets1,6052,306
  Derivative financial assets04
  Accounts receivable4,0664,185
  Receivables financing7138
  Prepayments132104
  Other receivables11587
  Inventories3,4083,195
  Other current assets393375
Total current assets20,41117,619
Non-current assets
  Long-term receivables3133
  Long-term equity investments666695
  Other equity investments434447
  Investment properties8486
  Fixed assets18,40818,744
  Construction in progress2,0391,053
  Right-of-use assets519563
  Intangible assets659662
  Goodwill2,2622,248
  Long-term prepaid expenses1317
  Deferred tax assets377364
  Other non-current assets6648
Total non-current assets25,55824,960
Total assets45,96942,579
LIABILITIES AND EQUITY  Jun 30, 2024Dec 31, 2023
Current liabilities
  Short-term borrowings4671,696
  Derivative financial liabilities20
  Notes payable300223
  Accounts payable5,7734,782
  Contract liabilities260185
  Employee benefits payable732781
  Taxes and surcharges payable116167
  Other payables368354
  Current portion of long-term liabilities1,8061,491
  Other current liabilities23
Total current liabilities9,8269,682
Non-current liabilities
  Long-term borrowings7,7495,777
  Lease liabilities480530
  Long-term payables30
  Long-term employee benefits payable1414
  Deferred income438384
  Other non-current liabilities3841
Total non-current liabilities8,7226,746
Total liabilities18,54816,428
Equity
  Paid-in capital1,7891,789
  Capital reserves15,22815,237
  Accumulated other comprehensive income591543
  Specialized reserves10
  Surplus reserves257257
  Unappropriated profit8,6808,239
Total equity attributable to owners of the parent26,54626,065
Minority shareholders87586
Total equity27,42126,151
Total liabilities and equity45,96942,579
CONSOLIDATED INCOME STATEMENT (Unaudited)RMB in millions, except share data
Three months endedSix months ended
Jun 30, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
Revenue8,6456,31315,48712,173
Less: Cost of sales7,4105,35913,41710,525
          Taxes and surcharges22273547
          Selling expenses6451118100
          Administrative expenses209175433347
          Research and development expenses438360819669
          Finance expenses(19)(7)(11)51
            Including: Interest expenses9968192131
                     Interest income802714135
Add: Other income47408673
         Investment income / (loss)(4)(24)(14)(21)
            Including: Income / (loss) from investments in associates and joint ventures(12)(10)(29)(21)
         Gain / (loss) on changes in fair value of financial assets/liabilities 037(5)46
         Credit impairment (loss is expressed by “-“)(14)(6)(7)(1)
         Asset impairment (loss is expressed by “-“)(20)(5)(38)0
         Gain / (loss) on disposal of assets 213516
Operating profit / (loss)532403703547
Add: Non-operating income0213
Less: Non-operating expenses2024
Profit / (loss) before income taxes530405702546
Less: Income tax expenses47198550
Net profit / (loss) 483386617496
Classified by continuity of operations
  Profit / (loss) from continuing operations483386617496
Classified by ownership
  Net profit / (loss) attributable to owners of the parent484386619496
  Net profit / (loss) attributable to minority shareholders(1)0(2)0
Add: Unappropriated profit at beginning of period8,3747,2648,2397,154
Less: Cash dividends declared178358178358
Unappropriated profit at end of period (attributable to owners of the parent)8,6807,2928,6807,292
Other comprehensive income, net of tax3648148350
Comprehensive income attributable to owners of the parent3648148350
Comprehensive income not be reclassified to profit or loss(8)6(13)17
  Remeasurement gains or losses of a defined benefit plan0001
  Change in the fair value of other equity investments(8)6(13)16
Comprehensive income to be reclassified to profit or loss4447561333
  Exchange differences of foreign currency financial statements4447561333
Total comprehensive income519867665846
  Including:
     Total comprehensive income attributable to owners of the parent520867667846
     Total comprehensive income attributable to minority shareholders(1)0(2)0
Earnings per share
  Basic earnings per share0.270.220.350.28
  Diluted earnings per share0.270.220.350.28
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) RMB in millions
Three months endedSix months ended
Jun 30, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
  Cash receipts from the sale of goods and the rendering of services8,7846,17816,59013,162
  Receipts of taxes and surcharges refunds81122198216
  Other cash receipts relating to operating activities181110283163
Total cash inflows from operating activities9,0466,41017,07113,541
  Cash payments for goods and services6,0784,06911,2548,454
  Cash payments to and on behalf of employees1,0568782,2482,072
  Payments of all types of taxes and surcharges197254289466
  Other cash payments relating to operating activities6122253128
Total cash outflows from operating activities7,3925,22314,04411,120
Net cash flows from operating activities1,6541,1873,0272,421
CASH FLOWS FROM INVESTING ACTIVITIES
  Cash receipts from returns of investments4,8004,3509,0508,280
  Cash receipts from investment income2381552
  Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets27532
Total cash inflows from investing activities4,8044,3959,0708,364
  Cash payments to acquire fixed assets, intangible assets and other long-term assets9377491,8701,588
  Cash payments for investments4,6503,2008,3505,980
Total cash outflows from investing activities5,5873,94910,2207,568
Net cash flows from investing activities(783)446(1,150)796
CASH FLOWS FROM FINANCING ACTIVITIES
  Cash proceeds from investments by others6230776230
      Including: Cash receipts from capital contributions from minority shareholders of subsidiaries08676586
  Cash receipts from borrowings7281,3173,0071,664
Total cash inflows from financing activities7341,5473,7831,894
  Cash repayments for debts6577551,9631,740
  Cash payments for distribution of dividends or profit and interest expenses272414352467
  Other cash payments relating to financing activities34165348
Total cash outflows from financing activities9631,1852,3682,255
Net cash flows from financing activities(229)3621,415(361)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS245437
NET INCREASE IN CASH AND CASH EQUIVALENTS6442,0403,2962,893
Add: Cash and cash equivalents at beginning of period9,9773,3067,3252,453
CASH AND CASH EQUIVALENTS AT END OF PERIOD10,6215,34610,6215,346

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