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
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SOURCE JCET Group