Steady Development Driven by Innovation, JCET Revenue of Q4 2023 Hits a Record High

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Apr 18, 2024, 09:05 ET

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, 2023	Dec 31, 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