JCET 1H 2021 Net Profit Jumps 261%, Earnings Surpass FY 2020 Mark
Q2 2021 Financial Highlights:
- Revenue was RMB 7.11 billion, an increase of 13.4% year on year. A record high second quarter in the company's history.
- Generated RMB 1.68 billion cash from operations, an increase of 67.1% year on year. With net capex investments of RMB 0.92 billion, free cash flow for the quarter was RMB 0.76 billion.
- Net profit was RMB 0.94 billion, a record high second quarter in the company's history.
- Earnings per share was RMB 0.54, as compared to RMB 0.15 in Q2 2020.
1H 2021 Financial Highlights:
- Revenue was RMB 13.82 billion, an increase of 15.4% year on year.
- Generated RMB 2.88 billion cash from operations, an increase of 33.9% year on year. With net capex investments of RMB 1.48 billion, free cash flow for the first half of 2021 was RMB 1.40 billion.
- Net profit was RMB 1.32 billion, an increase of 261.0% year on year，a record high in the company's history.
- Earnings per share was RMB 0.78, as compared to RMB 0.23 in 1H 2020.
- Successfully completed private placement of RMB 5 billion in April 2021.
SHANGHAI, Aug. 20, 2021 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first half year of 2021. According to the financial report, in 1H 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 13.82 billion and net profit of RMB 1.32 billion, which achieved 15.4% and 261.0% year on year growth respectively.
Ms. Janet Chou, CFO of JCET said, "Thanks to the solid execution of our team and strong customer demand, JCET delivered another record setting quarter in 2021 with gross margin expanding 260 basis points year on year in Q2. With strong operating cash generation and robust free cash flow, we further strengthened our balance sheet."
Along with a strong financial performance, JCET had many additional key accomplishments in Q2 2021. In April, JCET established the "Design Service Business Center" and "Automotive Electronics Business Center" to strengthen efficient interaction and synergistic development with the industry ecosystem and provide seamless and efficient full lifecycle technical service support to customers. JCET completed a private placement raising approximately RMB 5 billion to enhance capabilities in SiP, QFN, BGA and other finished chip manufacturing solutions to better meet the needs of 5G communication devices, big data, automotive electronics and other market applications. And in June, JCET completed the acquisition of Analog Devices Inc.'s Singapore test facility that enabled the continued expansion of JCET test business in Singapore and the rapid and steady advancement of its global business strategies.
Mr. Li Zheng, CEO of JCET said, "The dynamic and innovative applications in the post-Moore era have driven the rapid upgrade of advanced packaging and backend chipset manufacturing solutions, and this gives JCET great opportunities for growth. In recent years, JCET has been partnering with our global customers, continuously increasing investment in advanced technologies, and strengthening our professional and international management and production operation systems, resulting in record revenue and net profit in the first half of 2021. In the future, we will continue to invest in R&D of advanced technology solutions, optimize operational capabilities, strengthen our professional team, and implement a talent incentive mechanism under the guidance and support of the Board of Directors, to lay a solid foundation for the sustainable development of JCET."
About JCET:
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 (Unaudited) |
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RMB in millions |
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| |
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As of |
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Jun 30, 2021 |
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Dec 31, 2020 |
| ASSETS |
|
|
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|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Currency funds |
|
|
|
|
|
3,381 |
|
2,235 |
| Financial assets held for trading |
|
|
|
|
|
1,955 |
|
5 |
| Derivative financial assets |
|
|
|
|
|
0 |
|
8 |
| Accounts receivable |
|
|
|
|
|
3,661 |
|
3,846 |
| Receivables financing |
|
|
|
|
|
73 |
|
41 |
| Prepayments |
|
|
|
|
|
244 |
|
158 |
| Other receivables |
|
|
|
|
|
30 |
|
41 |
| Inventories |
|
|
|
|
|
2,919 |
|
2,946 |
| Other current assets |
|
|
|
|
|
108 |
|
149 |
| Total current assets |
|
|
|
|
|
12,371 |
|
9,429 |
| Non-current assets |
|
|
|
|
|
|
|
|
| Long-term receivables |
|
|
|
|
|
40 |
|
42 |
| Long-term equity investments |
|
|
|
|
|
769 |
|
949 |
| Other equity investments |
|
|
|
|
|
430 |
|
430 |
| Investment properties |
|
|
|
|
|
94 |
|
96 |
| Fixed assets |
|
|
|
|
|
17,349 |
|
17,790 |
| Construction in progress |
|
|
|
|
|
1,671 |
|
866 |
| Right-of-use assets |
|
|
|
|
|
664 |
|
0 |
| Intangible assets |
|
|
|
|
|
458 |
|
526 |
| Goodwill |
|
|
|
|
|
2,050 |
|
2,071 |
| Deferred tax assets |
|
|
|
|
|
79 |
|
128 |
| Other non-current assets |
|
|
|
|
|
1 |
|
1 |
| Total non-current assets |
|
|
|
|
|
23,605 |
|
22,899 |
| Total assets |
|
|
|
|
|
35,976 |
|
32,328 |
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
|
|
|
|
3,197 |
|
5,288 |
| Derivative financial liabilities |
|
|
|
|
|
5 |
|
0 |
| Notes payable |
|
|
|
|
|
348 |
|
513 |
| Accounts payable |
|
|
|
|
|
5,059 |
|
4,499 |
| Contract liabilities |
|
|
|
|
|
332 |
|
173 |
| Employee benefits payable |
|
|
|
|
|
765 |
|
858 |
| Taxes and surcharges payable |
|
|
|
|
|
98 |
|
109 |
| Other payables |
|
|
|
|
|
336 |
|
254 |
| Including: Dividends payable |
|
|
|
|
|
89 |
|
0 |
| Current portion of long-term liabilities |
|
|
|
|
|
1,891 |
|
2,131 |
| Other current liabilities |
|
|
|
|
|
12 |
|
21 |
| Total current liabilities |
|
|
|
|
|
12,043 |
|
13,846 |
| Non-current liabilities |
|
|
|
|
|
|
|
|
| Long-term borrowings |
|
|
|
|
|
2,315 |
|
2,978 |
| Bonds payable |
|
|
|
|
|
999 |
|
999 |
| Lease liabilities |
|
|
|
|
|
561 |
|
0 |
| Long-term payables |
|
|
|
|
|
125 |
|
592 |
| Long-term employee benefits payable |
|
|
|
|
|
3 |
|
4 |
| Deferred income |
|
|
|
|
|
337 |
|
375 |
| Deferred tax liabilities |
|
|
|
|
|
132 |
|
124 |
| Total non-current liabilities |
|
|
|
|
|
4,472 |
|
5,072 |
| Total liabilities |
|
|
|
|
|
16,515 |
|
18,918 |
| Equity |
|
|
|
|
|
|
|
|
| Paid-in capital |
|
|
|
|
|
1,780 |
|
1,603 |
| Surplus reserves |
|
|
|
|
|
14,984 |
|
10,242 |
| Accumulated other comprehensive income |
|
|
|
|
|
(185) |
|
(83) |
| Specialized reserves |
|
|
|
|
|
120 |
|
120 |
| Unappropriated profit |
|
|
|
|
|
2,751 |
|
1,518 |
| Total equity attributable to owners of the parent |
|
|
|
|
|
19,450 |
|
13,400 |
| Minority shareholders |
|
|
|
|
|
11 |
|
10 |
| Total equity |
|
|
|
|
|
19,461 |
|
13,410 |
| Total liabilities and equity |
|
|
|
|
|
35,976 |
|
32,328 |
| CONSOLIDATED INCOME STATEMENT (Unaudited) |
RMB in millions, except share data |
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Three months ended |
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Six months ended |
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| |
|
Jun 30,2021 |
|
Jun 30,2020 |
|
Jun 30,2021 |
|
Jun 30,2020 |
| Revenue |
|
7,106 |
|
6,268 |
|
13,818 |
|
11,976 |
| Less: Cost of sales |
|
5,793 |
|
5,271 |
|
11,430 |
|
10,232 |
| Taxes and surcharges |
|
22 |
|
9 |
|
42 |
|
17 |
| Selling expenses |
|
47 |
|
59 |
|
97 |
|
116 |
| Administrative expenses |
|
237 |
|
226 |
|
467 |
|
435 |
| Research and development expenses |
|
291 |
|
276 |
|
548 |
|
491 |
| Finance expenses |
|
61 |
|
156 |
|
157 |
|
303 |
| Including: Interest expenses |
|
90 |
|
149 |
|
200 |
|
303 |
| Interest income |
|
15 |
|
10 |
|
20 |
|
19 |
| Add: Other income |
|
56 |
|
46 |
|
97 |
|
80 |
| Investment income / (loss) |
|
286 |
|
(6) |
|
284 |
|
(7) |
| Including: Income / (loss) from investments in associates and joint ventures |
|
285 |
|
(6) |
|
283 |
|
(7) |
| Gain / (loss) on the net position hedging |
|
(1) |
|
(4) |
|
(3) |
|
(5) |
| Credit impairment (loss is expressed by "-") |
|
(4) |
|
(11) |
|
0 |
|
(6) |
| Asset impairment (loss is expressed by "-") |
|
11 |
|
(28) |
|
(17) |
|
(25) |
| Gain / (loss) on disposal of assets |
|
9 |
|
5 |
|
15 |
|
9 |
| Operating profit / (loss) |
|
1,012 |
|
273 |
|
1,453 |
|
428 |
| Add: Non-operating income |
|
5 |
|
0 |
|
6 |
|
0 |
| Less: Non-operating expenses |
|
1 |
|
2 |
|
3 |
|
8 |
| Profit / (loss) before income taxes |
|
1,016 |
|
271 |
|
1,456 |
|
420 |
| Less: Income tax expenses |
|
80 |
|
38 |
|
133 |
|
53 |
| Net profit / (loss) |
|
936 |
|
233 |
|
1,323 |
|
367 |
| Classified by continuity of operations |
|
|
|
|
|
|
|
|
| Profit / (loss) from continuing operations |
|
936 |
|
233 |
|
1,323 |
|
367 |
| Classified by ownership |
|
|
|
|
|
|
|
|
| Net profit / (loss) attributable to owners of the parent |
|
936 |
|
233 |
|
1,322 |
|
367 |
| Net profit / (loss) attributable to minority shareholders |
|
0 |
|
0 |
|
1 |
|
0 |
| Add: Unappropriated profit at beginning of period |
|
1,904 |
|
365 |
|
1,518 |
|
231 |
| Cash dividends payable |
|
89 |
|
0 |
|
89 |
|
0 |
| Unappropriated profit at end of period (attributable to owners of the parent） |
|
2,751 |
|
598 |
|
2,751 |
|
598 |
| Other comprehensive income, net of tax |
|
(148) |
|
27 |
|
(101) |
|
157 |
| Comprehensive income attributable to owners of the parent |
|
(148) |
|
27 |
|
(101) |
|
157 |
| Comprehensive income not be reclassified to profit or loss |
|
0 |
|
0 |
|
1 |
|
0 |
| Remeasurement gains or losses of a defined benefit plan |
|
0 |
|
0 |
|
1 |
|
0 |
| Comprehensive income to be reclassified to profit or loss |
|
(148) |
|
27 |
|
(102) |
|
157 |
| Comprehensive income using the equity method |
|
(20) |
|
|
|
(21) |
|
|
| Cash flow hedge reserve |
|
5 |
|
5 |
|
(5) |
|
3 |
| Exchange differences of foreign currency financial statements |
|
(133) |
|
22 |
|
(76) |
|
154 |
| Total comprehensive income |
|
788 |
|
260 |
|
1,222 |
|
524 |
| Including: |
|
|
|
|
|
|
|
|
| Total comprehensive income attributable to owners of the parent |
|
788 |
|
260 |
|
1,221 |
|
524 |
| Total comprehensive income attributable to minority shareholders |
|
0 |
|
0 |
|
1 |
|
0 |
| Earnings per share |
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
0.54 |
|
0.15 |
|
0.78 |
|
0.23 |
| Diluted earnings per share |
|
0.54 |
|
0.15 |
|
0.78 |
|
0.23 |
| CONSOLIDATED CASH FLOW STATEMENT (Unaudited) RMB in millions |
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| |
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
Six months ended |
||||
| |
|
Jun 30,2021 |
|
Jun 30,2020 |
|
Jun 30,2021 |
|
Jun 30,2020 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| Cash receipts from the sale of goods and the rendering of services |
|
7,346 |
|
6,857 |
|
14,785 |
|
12,892 |
| Receipts of taxes and surcharges refunds |
|
76 |
|
200 |
|
233 |
|
423 |
| Other cash receipts relating to operating activities |
|
62 |
|
230 |
|
113 |
|
523 |
| Total cash inflows from operating activities |
|
7,484 |
|
7,287 |
|
15,131 |
|
13,838 |
| Cash payments for goods and services |
|
4,347 |
|
5,117 |
|
9,420 |
|
9,342 |
| Cash payments to and on behalf of employees |
|
1,142 |
|
829 |
|
2,270 |
|
1,788 |
| Payments of all types of taxes and surcharges |
|
249 |
|
142 |
|
379 |
|
232 |
| Other cash payments relating to operating activities |
|
69 |
|
195 |
|
181 |
|
323 |
| Total cash outflows from operating activities |
|
5,807 |
|
6,283 |
|
12,250 |
|
11,685 |
| Net cash flows from operating activities |
|
1,677 |
|
1,004 |
|
2,881 |
|
2,153 |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| Cash receipts from returns of investments |
|
396 |
|
0 |
|
396 |
|
0 |
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets |
|
132 |
|
20 |
|
168 |
|
27 |
| Total cash inflows from investing activities |
|
528 |
|
20 |
|
564 |
|
27 |
| Cash payments to acquire fixed assets, intangible assets and other long-term assets |
|
1,051 |
|
659 |
|
1,648 |
|
1,337 |
| Cash payments for investments |
|
1,955 |
|
0 |
|
1,955 |
|
0 |
| Total cash outflows from investing activities |
|
3,006 |
|
659 |
|
3,603 |
|
1,337 |
| Net cash flows from investing activities |
|
(2,478) |
|
(639) |
|
(3,039) |
|
(1,310) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| Cash proceeds from investments by others |
|
4,966 |
|
0 |
|
4,966 |
|
0 |
| Cash receipts from borrowings |
|
737 |
|
2,601 |
|
2,360 |
|
8,531 |
| Other cash receipts relating to financing activities |
|
0 |
|
0 |
|
347 |
|
0 |
| Total cash inflows from financing activities |
|
5,703 |
|
2,601 |
|
7,673 |
|
8,531 |
| Cash repayments for debts |
|
2,867 |
|
2,393 |
|
5,529 |
|
8,141 |
| Cash payments for distribution of dividends or profit and interest expenses |
|
71 |
|
141 |
|
205 |
|
305 |
| Other cash payments relating to financing activities |
|
452 |
|
111 |
|
559 |
|
285 |
| Total cash outflows from financing activities |
|
3,390 |
|
2,645 |
|
6,293 |
|
8,731 |
| Net cash flows from financing activities |
|
2,313 |
|
(44) |
|
1,380 |
|
(200) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
(15) |
|
(7) |
|
(8) |
|
16 |
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
1,497 |
|
314 |
|
1,214 |
|
659 |
| Add: Cash and cash equivalents at beginning of period |
|
1,884 |
|
2,211 |
|
2,167 |
|
1,866 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
3,381 |
|
2,525 |
|
3,381 |
|
2,525 |
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