Steady Development Driven by Innovation, JCET Revenue of Q4 2023 Hits a Record High
Q4 2023 Financial Highlights:
-- Revenue was RMB 9.23 billion, an increase of 11.8% quarter-on-quarter,
and an increase of about 3% year-on-year, a record high single quarter
in the company's history.
-- Net profit was RMB 0.5 billion, an increase of 3.9% quarter-on-quarter.
-- Generated RMB 1.4 billion cash from operations. With net capex
investments of RMB 0.76 billion, free cash flow for the quarter was RMB
0.64 billion.
-- Earnings per share was RMB 0.28.
Full Year 2023 Financial Highlights:
-- Revenue was RMB 29.66 billion.
-- Net profit was RMB 1.47 billion.
-- Generated RMB 4.44 billion cash from operations. With net capex
investments of RMB 3.07 billion, free cash flow was RMB 1.37 billion.
-- Earnings per share was RMB 0.82.
SHANGHAI, April 18, 2024 /PRNewswire/ -- JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, today announced its full year financial results for the year ended December 31, 2023. According to the financial report, in 2023 JCET achieved revenue of RMB 29.66 billion, and net profit of RMB 1.47 billion. In Q4 2023 JCET achieved revenue of RMB 9.23 billion, an increase of 11.8% quarter-on-quarter and an increase of about 3% year-on-year, a record high single quarter in the company's history; and net profit of RMB 0.5 billion, an increase of 3.9% quarter-on-quarter.
In 2023, JCET effectively responded to market changes, focusing on high-performance advanced packaging, strengthening innovation and upgrading to achieve stable business development, the company's operations have continued to improve since Q2 2023, and performance rebounded quarter by quarter. JCET has continuously optimized asset structures, improved cash flow capability, and achieved positive free cash flow for 5 consecutive years from 2019 to 2023.
JCET has achieved continuous breakthroughs in the field of advanced packaging technologies such as high-density system level packaging, large size flip chip packaging and wafer level packaging, and the proportion of advanced packaging revenue exceeded two-thirds of company's revenue. JCET continues to enhance its technological innovation, with R&D investment of RMB 1.44 billion in 2023, a year-on-year increase of 9.7%.
The company has enhanced its overall solution and production capabilities towards application scenarios. In the fields of high-end communications, industrial electronics and wide bandgap semiconductors, JCET with its global customers have developed diversified innovative applications, with continuous increase of mass production introduction. JCET's automotive electronics business has maintained continuous expansion in technological achievements and number of customers in 2023, with revenue in this segment increasing by 68% year-on-year. At the same time, JCET accelerates the construction of its first automotive chip advanced packaging flagship factory in Shanghai.
Mr. Li Zheng, CEO of JCET, said, "JCET continues to develop its core competitiveness, characterized by global customer diversification, professional management, and innovative internationalized operations. Strategic initiatives executed in 2023 have laid a solid foundation for steady growth in 2024 and the near future."
For more information, please refer to the JCET FY2023 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 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 (Audited) RMB in
millions
Dec 31,
2023 Dec 31, 2022
ASSETS
Current assets
Currency funds 7,325 2,459
Trading financial assets 2,306 4,316
Derivative financial assets 4 18
Accounts receivable 4,185 3,689
Receivables financing 38 59
Prepayments 104 110
Other receivables 87 61
Inventories 3,195 3,152
Other current assets 375 279
Total current assets 17,619 14,143
Non-current assets
Long-term receivables 33 40
Long-term equity investments 695 765
Other equity investments 447 440
Investment properties 86 89
Fixed assets 18,744 19,517
Construction in progress 1,053 807
Right-of-use assets 563 578
Intangible assets 662 483
Goodwill 2,248 2,210
Long-term prepaid expenses 17 28
Deferred tax assets 364 247
Other non-current assets 48 61
Total non-current assets 24,960 25,265
Total assets 42,579 39,408
LIABILITIES AND EQUITY Dec 31,
2023 Dec 31, 2022
Current liabilities
Short-term borrowings 1,696 1,174
Notes payable 223 339
Accounts payable 4,782 4,634
Contract liabilities 185 214
Employee benefits payable 781 984
Taxes and surcharges payable 167 210
Other payables 354 378
Current portion of long-term liabilities 1,491 3,096
Other current liabilities 3 4
Total current liabilities 9,682 11,033
Non-current liabilities
Long-term borrowings 5,777 2,721
Lease liabilities 530 562
Long-term employee benefits payable 14 14
Deferred income 384 340
Deferred tax liabilities 0 40
Other non-current liabilities 41 55
Total non-current liabilities 6,746 3,732
Total liabilities 16,428 14,765
Equity
Paid-in capital 1,789 1,780
Capital reserves 15,237 15,080
Accumulated other comprehensive income 543 400
Surplus reserves 257 229
Unappropriated profit 8,239 7,154
Total equity attributable to owners of the parent 26,065 24,643
Minority shareholders 86 0
Total equity 26,151 24,643
Total liabilities and equity 42,579 39,408
CONSOLIDATED INCOME STATEMENT (Audited) RMB in millions, except
share data
Three months ended Year ended
Dec 31, Dec 31,
2023 2022 Dec 31, 2023 Dec 31, 2022
Revenue 9,231 8,984 29,661 33,762
Less: Cost of sales 8,016 7,688 25,612 28,010
Taxes and surcharges 24 20 106 90
Selling expenses 51 42 206 184
Administrative expenses 215 95 751 900
Research and development expenses 358 333 1,440 1,313
Finance expenses 114 137 191 126
Including: Interest expenses 99 64 314 207
Interest income 42 10 112 31
Add: Other income 38 53 214 191
Investment income / (loss) 36 63 2 128
Including: Income / (loss) from investments in associates and joint ventures (36) 1 (70) (5)
Gain / (loss) on changes in fair value of financial assets/liabilities (44) 3 18 (37)
Credit impairment (loss is expressed by "-") (2) 17 (5) 34
Asset impairment (loss is expressed by "-") (47) (131) (73) (257)
Gain / (loss) on disposal of assets (12) 6 9 48
Operating profit / (loss) 422 680 1,520 3,246
Add: Non-operating income 6 2 9 47
Less: Non-operating expenses 2 1 7 2
Profit / (loss) before income taxes 426 681 1,522 3,291
Less: Income tax expenses (70) (98) 52 60
Net profit / (loss) 496 779 1,470 3,231
Classified by continuity of operations
Profit / (loss) from continuing operations 496 779 1,470 3,231
Classified by ownership
Net profit / (loss) attributable to owners of the parent 497 779 1,471 3,231
Net profit / (loss) attributable to minority shareholders (1) 0 (1) 0
Add: Unappropriated profit at beginning of period 7,771 6,430 7,154 4,334
Less: Extract statutory surplus accumulation 29 55 29 55
Cash dividends payable 0 0 357 356
Unappropriated profit at end of period (attributable to owners of the parent? 8,239 7,154 8,239 7,154
Other comprehensive income, net of tax (137) (151) 143 680
Comprehensive income attributable to owners of the parent (137) (151) 143 680
Comprehensive income not be reclassified to profit or loss (3) 7 7 (7)
Remeasurement gains or losses of a defined benefit plan (1) 1 0 1
Change in the fair value of other equity investments (2) 6 7 (8)
Comprehensive income to be reclassified to profit or loss (134) (158) 136 687
Cash flow hedge reserve 0 23 0 (4)
Exchange differences of foreign currency financial statements (134) (181) 136 691
Total comprehensive income 359 628 1,613 3,911
Including:
Total comprehensive income attributable to owners of the parent 360 628 1,614 3,911
Total comprehensive income attributable to minority shareholders (1) 0 (1) 0
Earnings per share
Basic earnings per share 0.28 0.44 0.82 1.82
Diluted earnings per share 0.28 0.43 0.82 1.81
CONSOLIDATED CASH FLOW STATEMENT (Audited) RMB in millions
Three months ended Year ended
Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services 9,696 11,033 30,433 36,233
Receipts of taxes and surcharges refunds (99) 34 168 307
Other cash receipts relating to operating activities 98 103 387 321
Total cash inflows from operating activities 9,695 11,170 30,988 36,861
Cash payments for goods and services 7,405 8,458 21,698 25,604
Cash payments to and on behalf of employees 1,013 1,019 3,985 4,275
Payments of all types of taxes and surcharges (181) (152) 465 543
Other cash payments relating to operating activities 54 213 403 427
Total cash outflows from operating activities 8,291 9,538 26,551 30,849
Net cash flows from operating activities 1,404 1,632 4,437 6,012
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments 6,200 4,151 18,081 12,701
Cash receipts from investment income 32 33 100 89
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets (68) (3) 63 107
Net cash receipts from disposal of subsidiaries and other business units 0 0 0 30
Total cash inflows from investing activities 6,164 4,181 18,244 12,927
Cash payments to acquire fixed assets, intangible assets and other long-term assets 695 1,236 3,129 3,924
Cash payments for investments 4,920 4,300 16,081 14,361
Other cash payments relating to investing activities 32 0 32 0
Total cash outflows from investing activities 5,647 5,536 19,242 18,285
Net cash flows from investing activities 517 (1,355) (998) (5,358)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 4 0 266 0
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries 0 0 86 0
Cash receipts from borrowings 2,433 2,255 8,920 5,216
Total cash inflows from financing activities 2,437 2,255 9,186 5,216
Cash repayments for debts 1,592 2,523 7,056 5,053
Cash payments for distribution of dividends or profit and interest expenses 82 29 627 524
Other cash payments relating to financing activities 23 (71) 92 687
Total cash outflows from financing activities 1,697 2,481 7,775 6,264
Net cash flows from financing activities 740 (226) 1,411 (1,048)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (8) (10) 22 84
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,653 41 4,872 (310)
Add: Cash and cash equivalents at beginning of period 4,672 2,412 2,453 2,763
CASH AND CASH EQUIVALENTS AT END OF PERIOD 7,325 2,453 7,325 2,453
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SOURCE JCET Group
