JCET Posts Second Consecutive Quarter with Record High in Q2 2020
Strong demand for advanced technology drives growth (Q2 2020 Financial Highlights):
-- Revenue was RMB 6.27 billion, a record high in the second quarter. On a
comparable basis, taking into account the accounting change in revenue
recognition, it was an increase of 55.3% year on year (see note).
-- Generated RMB 1.00 billion cash from operations, up 54.9% year on year.
With net capex investments of RMB 0.64 billion, free cash flow for the
quarter was RMB 0.36 billion.
-- Net profit was RMB 0.23 billion, a record high second quarter in the
past five years.
-- Earnings per share was RMB 0.15, as compared to RMB -0.13 in Q2 2019.
Note: 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 0.93 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
7.20 billion, an increase of 55.3% over the same period last year.
SHANGHAI, Aug. 20, 2020 /PRNewswire/ -- Global leading semiconductor microsystem integration packaging and test provider, JCET Group (SH: 600584) reported financial results for the second quarter 2020, ended June 30(th), 2020. Revenue was RMB 6.27 billion and net profit was RMB 0.23 billion, both a record second quarter high in the past five years. These results show that JCET's investment in the development of advanced packaging and test technologies has begun to bear fruit.
Mr. Li Zheng, Chief Executive Officer of JCET Group, said, "Following our strong Q1 with this Q2 performance shows that JCET is benefiting from the strengths of our three global manufacturing hubs, and the continuous improvement of our operational excellence. The rapid development of the 5G communications industry and high-performance computing applications has increased the demand for advanced packaging technologies and manufacturing processes. JCET Group's global supply chain resources and strong portfolio of advanced technology combined with our world-class management team will continue to provide our global customers with industry-leading semiconductor packaging, test and design services."
Ms. Janet Chou, Chief Financial Officer of JCET Group, said, "JCET delivered solid second quarter results with improvement in key financial metrics. Our performance demonstrated our commitment to drive profitable growth and cash generation."
About JCET Group:
JCET Group is a leading global semiconductor system integration packaging and test 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
ASSETS
Jun 30, 2020
Dec 31, 2019
Current assets
Currency funds 2,813 2,569
Derivative financial assets 3 4
Accounts receivable 2,958 3,350
Receivables financing 59 68
Prepayments 214 188
Other receivables 12 11
Inventories 2,663 2,731
Current portion of non-current assets 137 137
Other current assets 186 501
Total current assets 9,045 9,559
Non-current assets
Long-term receivables 31 40
Long-term equity investments 986 972
Other equity investments 527 517
Investment properties 98 100
Fixed assets 18,130 17,799
Construction in progress 1,146 1,664
Intangible assets 560 587
Goodwill 2,248 2,214
Long-term prepaid expenses 0 1
Deferred tax assets 121 128
Other non-current assets 1 1
Total non-current assets 23,848 24,023
Total assets 32,893 33,582
CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited) RMB in millions
---
As of
LIABILITIES AND EQUITY Jun 30, 2020 Dec 31, 2019
Current liabilities
Short-term borrowings 6,127 9,098
Derivative financial liabilities 101 161
Notes payable 589 958
Accounts payable 3,788 4,618
Receipts in advance 0 113
Contract liabilities 38 0
Employee benefits payable 588 586
Taxes and surcharges payable 93 53
Other payables 210 235
Current portion of long term liabilities 2,590 1,827
Total current liabilities 14,124 17,649
Non-current liabilities
Long-term borrowings 3,185 1,585
Bonds payable 1,012 0
Long-term payables 920 1,216
Long-term employee benefits payable 1 1
Deferred income 332 337
Deferred tax liabilities 159 156
Total non-current liabilities 5,609 3,295
Total liabilities 19,733 20,944
Equity
Paid-in capital 1,603 1,603
Surplus reserves 10,242 10,242
Accumulated other comprehensive income 586 429
Specialized reserves 122 122
Unappropriated profit 598 231
Total equity attributable to owners of the parent 13,151 12,627
Minority shareholders 9 11
Total equity 13,160 12,638
Total liabilities and equity 32,893 33,582
CONSOLIDATED INCOME STATEMENT(Unaudited)
RMB in millions, except share data
---
Three months ended Six months ended
Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
Revenue 6,268 4,634 11,976 9,149
Less: Cost of sales 5,271 4,149 10,232 8,298
Taxes and surcharges 9 9 17 17
Selling expenses 59 63 116 128
Administrative expenses 226 303 435 549
Research and development expenses 276 176 491 349
Finance expenses 156 186 303 434
Including: Interest expenses 149 171 303 368
Interest income 10 5 19 12
Add: Other income 46 41 80 185
Investment income/(loss) (6) (2) (7) (3)
Including: Income/(loss) from investments in (6) (2) (7) (3)
associates and joint ventures
Gain/(loss) on the net position hedging (4) 0 (5) 0
Credit impairment (loss is expressed by"-") (11) (9) (6) (8)
Asset impairment (loss is expressed by"-") (28) (17) (25) (14)
Gain/(loss) on disposal of assets 5 7 9 7
Operating profit/(loss) 273 (232) 428 (459)
Add: Non-operating income 0 0 0 1
Less: Non-operating expenses 2 0 8 4
Profit/(loss) before income taxes 271 (232) 420 (462)
Less: Income tax expenses 38 (20) 53 (204)
Net profit/(loss) 233 (212) 367 (258)
Classified by continuity of operations
Profit/(loss) from continuing operations 233 (212) 367 (258)
Classified by ownership
Net profit/(loss) attributable to owners of the parent 232 (212) 366 (259)
Net profit/(loss) attributable to minority shareholders 1 0 1 1
CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited)
RMB in millions, except share data
---
Three months ended Six months ended
Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
Other comprehensive income, net of tax 27 170 157 (42)
Comprehensive income attributable to owners of the 27 170 157 (42)
parent
Comprehensive income to be reclassified to profit or loss 27 170 157 (42)
Comprehensive income using the equity method 0 0 0 0
Cash flow hedge reserve 5 2 3 5
Exchange differences of foreign currency financial 22 168 154 (47)
statements
Total comprehensive income 260 (42) 524 (300)
Including:
Total comprehensive income attributable to owners of 259 (42) 524 (301)
the parent
Total comprehensive income attributable to minority 1 0 0 1
shareholders
Earnings per share
Basic earnings per share 0.15 (0.13) 0.23 (0.16)
Diluted earnings per share 0.15 (0.13) 0.23 (0.16)
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
RMB in millions
---
Three months ended Six months ended
Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of 6,857 4,547 12,892 9,956
services
Receipts of taxes and surcharges refunds 200 74 423 158
Other cash receipts relating to operating activities 230 41 523 208
Total cash inflows from operating activities 7,287 4,662 13,838 10,322
Cash payments for goods and services 5,117 2,901 9,342 7,176
Cash payments to and on behalf of employees 829 826 1,788 1,788
Payments of all types of taxes and surcharges 142 119 232 238
Other cash payments relating to operating activities 195 168 323 303
Total cash outflows from operating activities 6,283 4,014 11,685 9,505
Net cash flows from operating activities 1,004 648 2,153 817
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments 0 50 0 66
Cash receipts from investment income 0 (24) 0 0
Net cash receipts from disposal of fixed assets, intangible 20 9 27 15
assets and other long-term assets
Other cash receipts relating to investing activities 0 0 0 20
Total cash inflows from investing activities 20 35 27 101
Cash payments to acquire fixed assets, intangible assets and 659 940 1,337 1,530
other long-term assets
Total cash outflows from investing activities 659 940 1,337 1,530
Net cash flows from investing activities (639) (905) (1,310) (1,429)
CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)
RMB in millions
---
Three months ended Six months ended
Jun 30, 2020 Jun 30, 2019 Jun 30, 2020 Jun 30, 2019
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings 2,601 2,632 8,531 8,494
Other cash receipts relating to financing activities 0 777 0 777
Total cash inflows from financing activities 2,601 3,409 8,531 9,271
Cash repayments for debts 2,393 2,379 8,141 9,206
Cash payments for distribution of dividends or profit and 141 136 305 437
interest expenses
Other cash payments relating to financing activities 111 284 285 717
Total cash outflows from financing activities 2,645 2,799 8,731 10,360
Net cash flows from financing activities (44) 610 (200) (1,089)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND (7) 26 16 6
CASH EQUIVALENTS
NET INCREASE IN CASH AND CASH EQUIVALENTS 314 379 659 (1,695)
Add: Cash and cash equivalents at beginning of the year 2,211 2,132 1,866 4,206
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 2,525 2,511 2,525 2,511
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SOURCE JCET Group
