JCET's Global Manufacturing Strategy Produces Records for Revenue and Profit in Q3

Q3 2020 Financial Highlights:

    --  Revenue was RMB 6.79 billion. On a comparable basis, taking into account
        the accounting change in revenue recognition, it was an increase of
        11.2% year on year (see note).
    --  Generated RMB 1.48 billion cash from operations, up 171.3? year on year.
        With net capex investments of RMB 0.69 billion, free cash flow for the
        quarter was RMB 0.79 billion.
    --  Net profit was RMB 0.40 billion, a record high in the company's history.
    --  Earnings per share was RMB 0.25, as compared to RMB 0.05 in Q3 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 1.05 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 7.84 billion, an
              increase of 11.2% over the same
              period last year.

SHANGHAI, Oct. 30, 2020 /PRNewswire/ -- JCET Group Co., Ltd. (Shanghai Stock Exchange code: 600584), a world leading provider of semiconductor microsystem integration packaging and testing services announced financial results for the third quarter 2020, ended September 30, 2020. Revenue was RMB 6.79 billion and net profit was RMB 0.40 billion, showing steady revenue growth and continued improvement in profitability. JCET has achieved revenue of RMB 18.76 billion and net profit of RMB 0.76 billion through the first three quarters, both representing record highs for the company.

JCET has continued to grow its strategic partnerships with global industry leading semiconductor manufacturers by accelerating the growth of high volume production capacity of advanced assembly and test processes and engaging in robust market strategies. These initiatives have led to improvements in key financial metrics.

Mr. Li Zheng, Chief Executive Officer of JCET Group, said, "By expanding the integration of the resources in each of our worldwide operations, we have accelerated the growth of our production capacity for devices designed for key applications in the 5G, high-performance computing and high-end storage markets. Additionally, the technical services capabilities of each of our global factories have been enhanced significantly due to the continued improvements driven by our company's world-class management team."

Ms. Janet Chou, Chief Financial Officer of JCET Group, said, "With strong execution and operational discipline, JCET delivered record profit in the third quarter of 2020. We remain committed to driving profitable growth and cash generation. Given the improved liquidity position and healthier balance sheet, we will continue to invest in critical technologies to strengthen our core competencies."

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                                         Sep 30, 2020  Dec 31, 2019



                   Current
                    assets


        Currency
         funds                                                            2,248         2,569


         Derivative
         financial
         assets                                                               3             4


        Accounts
         receivable                                                       3,851         3,350


         Receivables
         financing                                                           85            68


        Prepayments                                                         201           188


        Other
         receivables                                                         11            11


        Inventories                                                       3,138         2,731


        Current
         portion
         of non-
         current
         assets                                                              56           137


        Other
         current
         assets                                                             194           501


                   Total
                    current
                    assets                                                9,787         9,559



                   Non-
                    current
                    assets


        Long-
         term
         receivables                                                         30            40


        Long-
         term
         equity
         investments                                                        941           972


        Other
         equity
         investments                                                        491           517


         Investment
         properties                                                          97           100


        Fixed
         assets                                                          17,970        17,799


         Construction
         in
         progress                                                         1,176         1,664


         Intangible
         assets                                                             556           587


        Goodwill                                                          2,159         2,214


        Long-
         term
         prepaid
         expenses                                                             0             1


        Deferred
         tax
         assets                                                             124           128


        Other
         non-
         current
         assets                                                               1             1


                   Total
                    non-
                    current
                    assets                                               23,545        24,023



                   Total
                    assets                                               33,332        33,582



                     CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited)     RMB in millions

    ---



                                                                        
     
                As of



                     LIABILITIES AND EQUITY                                        Sep 30, 2020  Dec 31, 2019



                     Current liabilities


          Short-term borrowings                                                            5,797         9,098


          Derivative financial
           liabilities                                                                        42           161


          Notes payable                                                                      487           958


          Accounts payable                                                                 5,212         4,618


          Receipts in advance                                                                  0           113


          Contract liabilities                                                                30             0


          Employee benefits
           payable                                                                           777           586


          Taxes and surcharges
           payable                                                                           116            53


          Other payables                                                                     217           235


          Current portion of
           long-term liabilities                                                           2,510         1,827


                     Total current
                      liabilities                                                         15,188        17,649



                     Non-current
                      liabilities


          Long-term borrowings                                                             2,680         1,585


          Bonds payable                                                                    1,022             0


          Long-term payables                                                                 714         1,216


          Long-term employee
           benefits payable                                                                    2             1


          Deferred income                                                                    365           337


          Deferred tax
           liabilities                                                                       158           156


                     Total non-current
                      liabilities                                                          4,941         3,295



                     Total liabilities                                                    20,129        20,944



                     Equity


          Paid-in capital                                                                  1,603         1,603


          Surplus reserves                                                                10,242        10,242


          Accumulated other
           comprehensive income                                                              232           429


          Specialized reserves                                                               122           122


          Unappropriated profit                                                              994           231


        Total equity
         attributable to owners
         of the parent                                                                    13,193        12,627



        Minority shareholders                                                                 10            11



                     Total equity                                                         13,203        12,638



                     Total liabilities and
                      equity                                                              33,332        33,582




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

    ---



                                                                                           Three months ended      Nine months ended



                                                                                              Sep 30, 2020            Sep 30, 2019          Sep 30, 2020   Sep 30, 2019




              
                Revenue                                                                     6,787                         7,047         18,763          16,196



              Less: Cost of sales                                                                      5,631                         6,209         15,863          14,507



                         Taxes and surcharges                                                             11                             9             28              26



                         Selling expenses                                                                 59                            71            175             199



                         Administrative expenses                                                         252                           265            687             814



                         Research and development expenses                                               277                           227            768             576



                         Finance expenses                                                                179                           223            482             657



                          Including: Interest expenses                                                   131                           220            433             589



                                          Interest income                                                 12                             7             31              20



              Add: Other income                                                                           17                            31             97             217



                        Investment income / (loss)                                                       (1)                            5            (8)              1



                          Including: Income / (loss) from investments in a                               (1)                            5            (8)              2
    ssociates and joint ventures



                        Gain / (loss) on the net position hedging                                          6                             0              1               0



                        Gain / (loss) on changes in fair value of financial assets                        28                             0             28               0



                        Credit impairment (loss is expressed by "-")                                     (1)                            2            (7)            (6)



                        Asset impairment (loss is expressed by "-")                                        0                           (1)          (25)           (15)



                        Gain / (loss) on disposal of assets                                               33                             7             42              14




              
                Operating profit / (loss)                                                     460                            87            888           (372)




              Add: Non-operating income                                                                    3                             0              3               1



              Less: Non-operating expenses                                                                10                             0             18               4




              
                Profit / (loss) before income taxes                                           453                            87            873           (375)




              Less: Income tax expenses                                                                   55                            10            108           (194)




              
                Net profit / (loss)                                                           398                            77            765           (181)




              Classified by continuity of operations



                Profit / (loss) from continuing operations                                               398                            77            765           (181)



              Classified by ownership



              
                  Net profit / (loss) attributable to owners of the parent                    398                            77            764           (182)




                Net profit / (loss) attributable to minority shareholders                                  0                             0              1               1



              Add: Unappropriated profit at beginning of period                                          598                         (116)           231             143



              Less: Other reductions                                                                       2                             0              2               0



              
                Unappropriated profit at end of period (attributable to owners                994                          (39)           994            (39)


              
                of the parent)



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

    ---



                                                                                      Three months ended Nine months ended



                                                                                         Sep 30, 2020       Sep 30, 2019                  Sep 30, 2020           Sep 30, 2019




              
                Other comprehensive income, net of tax                                 (354)               241                                (197)            199




              
                Comprehensive income attributable to owners of the parent              (354)               241                                (197)            199




              Comprehensive income not be reclassified to profit or loss                           (10)                 0                                 (10)              0



                Change in the fair value of other equity investments                               (10)                 0                                 (10)              0



              Comprehensive income to be reclassified to profit or loss                           (344)               241                                (187)            199



                Comprehensive income using the equity method                                          0                  0                                    0               0



                Cash flow hedge reserve                                                             (1)               (1)                                   1               4



                Exchange differences of foreign currency financial statements                     (343)               242                                (188)            195




              
                Total comprehensive income                                                42                318                                  567              18




                Including:



                   Total comprehensive income attributable to owners of the                          42                318                                  566              17
    parent



                   Total comprehensive income attributable to minority                                0                  0                                    1               1
    shareholders



              
                Earnings per share



                Basic earnings per share                                                           0.25               0.05                                 0.48          (0.11)




                Diluted earnings per share                                                         0.25               0.05                                 0.48          (0.11)



              
                CONSOLIDATED CASH FLOW STATEMENT (Unaudited)                              RMB in millions

    ---



                                                                                  Three months ended Nine months ended



                                                                                     Sep 30, 2020       Sep 30, 2019    Sep 30, 2020   Sep 30, 2019




              
                CASH FLOWS FROM OPERATING ACTIVITIES



              Cash receipts from the sale of goods and the rendering of services              6,468              6,695         19,360          16,651



              Receipts of taxes and surcharges refunds                                          105                139            528             297



              Other cash receipts relating to operating activities                              244                 69            767             277



              Total cash inflows from operating activities                                    6,817              6,903         20,655          17,225




              Cash payments for goods and services                                            4,241              5,200         13,584          12,376



              Cash payments to and on behalf of employees                                       856                911          2,644           2,699



              Payments of all types of taxes and surcharges                                      81                173            313             411



              Other cash payments relating to operating activities                              159                 74            482             377



              Total cash outflows from operating activities                                   5,337              6,358         17,023          15,863




              
                Net cash flows from operating activities                           1,480                545          3,632           1,362




              
                CASH FLOWS FROM INVESTING ACTIVITIES



              Cash receipts from returns of investments                                           6                 37              6             103



              Cash receipts from investment income                                                0                  2              0               2



              Net cash receipts from disposal of fixed assets, intangible assets                 38                 30             65              45
    and other long-term assets



              Other cash receipts relating to investing activities                                0                  0              0              20



              Total cash inflows from investing activities                                       44                 69             71             170




              Cash payments to acquire fixed assets, intangible assets and other                726                627          2,062           2,157
    long-term assets



              Total cash outflows from investing activities                                     726                627          2,062           2,157




              
                Net cash flows from investing activities                           (682)             (558)       (1,991)        (1,987)



              
                CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)                     RMB in millions

    ---



                                                                                     Three months ended Nine months ended



                                                                                        Sep 30, 2020       Sep 30, 2019    Sep 30, 2020   Sep 30, 2019




              
                CASH FLOWS FROM FINANCING ACTIVITIES



              Cash receipts from borrowings                                                      1,418              2,350          9,950          10,843



              Other cash receipts relating to financing activities                                   0              1,103              0           1,880



              Total cash inflows from financing activities                                       1,418              3,453          9,950          12,723




              Cash repayments for debts                                                          2,311              3,407         10,452          12,613



              Cash payments for distribution of dividends or profit and interest                   120                232            425             669
    expenses



              Other cash payments relating to financing activities                                 206                 51            491             766



              Total cash outflows from financing activities                                      2,637              3,690         11,368          14,048




              
                Net cash flows from financing activities                            (1,219)             (237)       (1,418)        (1,325)




              
                EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH                       (48)                37           (33)             43
    EQUIVALENTS




              
                NET INCREASE IN CASH AND CASH EQUIVALENTS                             (469)             (213)           190         (1,907)




              Add: Cash and cash equivalents at beginning of period                              2,525              2,512          1,866           4,206




              
                CASH AND CASH EQUIVALENTS AT END OF PERIOD                            2,056              2,299          2,056           2,299

View original content:http://www.prnewswire.com/news-releases/jcets-global-manufacturing-strategy-produces-records-for-revenue-and-profit-in-q3-301163877.html

SOURCE JCET Group