JCET Group: JCET Performance Hits Another Record High in 1H 2022, Benefiting From Global Resource Optimization

Q2 2022 Financial Highlights:

• Revenue was RMB 7.46 billion, an increase of 4.9% year on year. A record high second quarter in the company's history.
• Generated RMB 1.04 billion cash from operations. With net capex investments of RMB 0.64 billion, free cash flow for the quarter was RMB 0.4 billion.
• Net profit was RMB 0.68 billion.
• Earnings per share was RMB 0.39, as compared to RMB 0.54 in Q2 2021.

1H 2022 Financial Highlights:

• Revenue was RMB 15.59 billion, an increase of 12.8% year on year, a record high in the company's history.
• Generated RMB 2.68 billion cash from operations. With net capex investments of RMB 1.51 billion, free cash flow for the first half of 2022 was RMB 1.17 billion.
• Net profit was RMB 1.54 billion, an increase of 16.7% year on year, a record high in the company's history.
• Earnings per share was RMB 0.87, as compared to RMB 0.78 in 1H 2021.

SHANGHAI, Aug. 18, 2022 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, announced its financial results for the first half year of 2022. The financial report shows that in the first half of 2022, JCET achieved revenue of RMB 15.59 billion, an increase of 12.8% year on year, and net profit of RMB 1.54 billion, with an overall solid and positive performance.

In 2022, the global IC market showed local fluctuations, and the demand growth for individual applications slowed down. In the face of these market dynamics, JCET upheld its professional and international management strategies, leveraged its rich technology insights and global resource optimization, and focused on technologies and processes such as advanced packaging and high value-added applications, ensuring steady business operations while maintaining a solid upward development trend.

At the same time, JCET overcame the adverse impact of the recurring local COVID-19 epidemic to ensure stable and orderly production while achieving a series of milestones in innovative technology development and manufacturing expansion.

JCET increased its investment in production and technology development in the field of high-performance packaging and achieved new levels of packaging capabilities for chipsets for smartphones. At the same time, revenue from the automotive electronics and computing electronics markets increased significantly compared to the same period last year, showing that the company is continuing to optimize its product portfolio while focusing on markets of high value-added applications. With the cultivation of differentiated competitiveness, the company is building new momentum for further development. JCET's microelectronics wafer-level micro-system integration high-end manufacturing project officially started construction in July, which is an example of JCET's steady advancement of its business strategy in advanced packaging technology and high-end manufacturing. This will greatly enhance JCET's innovation and manufacturing capability to better meet the needs of global customers and to build up the future growth of the company.

Mr. Li Zheng, CEO of JCET said, "Due to the superimposed impact of the domestic epidemic and the fluctuation of the global economic situation, the overheated semiconductor IC market is likely to enter a downward cycle, especially the decline of the domestic cell phone market and consumer market. This will put certain pressure on the capacity efficiency of the company's domestic plants, and the orders from relevant markets are not optimistic. The company will continue to promote lean production and optimization of our product portfolio, and continue to actively invest in technology development and advanced production capacity in the field of high-performance packaging and testing to lay a solid foundation for future stable development."

For more information, please refer to the JCET 1H FY2022 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 (Unaudited)									RMB in millions
							Jun 30, 2022		Dec 31, 2021
ASSETS
Current assets
Currency funds							2,356		2,761
Trading financial assets							3,440		2,670
Derivative financial assets							0		5
Accounts receivable							3,695		4,271
Receivables financing							66		28
Prepayments							145		183
Other receivables							62		77
Inventories							3,771		3,193
Assets classified as held for sale							0		99
Other current assets							128		130
Total current assets							13,663		13,417
Non-current assets
Long-term receivables							37		38
Long-term equity investments							762		770
Other equity investments							441		418
Investment properties							91		93
Fixed assets							18,485		18,424
Construction in progress							961		661
Right-of-use assets							592		622
Intangible assets							485		447
Goodwill							2,130		2,023
Deferred tax assets							183		185
Other non-current assets							1		1
Total non-current assets							24,168		23,682
Total assets							37,831		37,099
LIABILITIES AND EQUITY							Jun 30, 2022		Dec 31, 2021
Current liabilities
Short-term borrowings							1,673		2,193
Derivative financial liabilities							16		2
Notes payable							215		579
Accounts payable							5,288		5,298
Contract liabilities							357		458
Employee benefits payable							929		1,062
Taxes and surcharges payable							180		235
Other payables							757		414
Liabilities classified as held for sale							0		45
Current portion of long-term liabilities							1,068		1,052
Other current liabilities							4		3
Total current liabilities							10,487		11,341
Non-current liabilities
Long-term borrowings							3,767		3,751
Lease liabilities							540		568
Long-term employee benefits payable							7		20
Deferred income							358		337
Deferred tax liabilities							95		82
Total non-current liabilities							4,767		4,758
Total liabilities							15,254		16,099
Equity
Paid-in capital							1,780		1,780
Capital reserves							14,996		14,984
Accumulated other comprehensive income							105		(281)
Surplus reserves							174		174
Unappropriated profit							5,522		4,334
Total equity attributable to owners of the parent							22,577		20,991
Minority shareholders							0		9
Total equity							22,577		21,000
Total liabilities and equity							37,831		37,099
CONSOLIDATED INCOME STATEMENT (Unaudited)									RMB in millions, except share data
			Three months ended				Six months ended
			Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Revenue			7,455		7,106		15,594		13,818
Less: Cost of sales			6,107		5,793		12,706		11,430
Taxes and surcharges			27		22		43		42
Selling expenses			48		47		97		97
Administrative expenses			236		237		494		467
Research and development expenses			315		291		638		548
Finance expenses			(8)		61		15		157
Including: Interest expenses			49		90		92		200
Interest income			9		15		16		20
Add: Other income			26		56		83		97
Investment income / (loss)			28		286		40		284
Including: Income / (loss) from investments in associates and joint ventures			(2)		285		(7)		283
Gain / (loss) on the net position hedging			0		(1)		0		(3)
Gain / (loss) on changes in fair value of financial assets/liabilities			(17)		0		(14)		0
Credit impairment (loss is expressed by "-")			2		(4)		(5)		0
Asset impairment (loss is expressed by "-")			(65)		11		(64)		(17)
Gain / (loss) on disposal of assets			9		9		23		15
Operating profit / (loss)			713		1,012		1,664		1,453
Add: Non-operating income			1		5		6		6
Less: Non-operating expenses			1		1		1		3
Profit / (loss) before income taxes			713		1,016		1,669		1,456
Less: Income tax expenses			31		80		126		133
Net profit / (loss)			682		936		1,543		1,323
Classified by continuity of operations
Profit / (loss) from continuing operations			682		936		1,543		1,323
Classified by ownership
Net profit / (loss) attributable to owners of the parent			682		936		1,543		1,322
Net profit / (loss) attributable to minority shareholders			0		0		0		1
Add: Unappropriated profit at beginning of period			5,196		1,904		4,335		1,518
Less: Cash dividends payable			356		89		356		89
Unappropriated profit at end of period (attributable to owners of the parent)			5,522		2,751		5,522		2,751
Other comprehensive income, net of tax			419		(148)		386		(101)
Comprehensive income attributable to owners of the parent			419		(148)		386		(101)
Comprehensive income not be reclassified to profit or loss			0		0		0		1
Remeasurement gains or losses of a defined benefit plan			0		0		0		1
Comprehensive income to be reclassified to profit or loss			419		(148)		386		(102)
Comprehensive income using the equity method that may be reclassified to profit or loss			(7)		(20)		(7)		(20)
Cash flow hedge reserve			(13)		5		(18)		(5)
Exchange differences of foreign currency financial statements			439		(133)		411		(77)
Total comprehensive income			1,101		788		1,929		1,222
Including:
Total comprehensive income attributable to owners of the parent			1,101		788		1,929		1,221
Total comprehensive income attributable to minority shareholders			0		0		0		1
Earnings per share
Basic earnings per share			0.39		0.54		0.87		0.78
Diluted earnings per share			0.39		0.54		0.87		0.78
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)									RMB in millions
			Three months ended				Six months ended
			Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services			8,184		7,346		16,999		14,785
Receipts of taxes and surcharges refunds			32		76		147		233
Other cash receipts relating to operating activities			62		62		132		113
Total cash inflows from operating activities			8,278		7,484		17,278		15,131
Cash payments for goods and services			5,766		4,347		11,612		9,420
Cash payments to and on behalf of employees			1,060		1,142		2,309		2,270
Payments of all types of taxes and surcharges			314		249		501		379
Other cash payments relating to operating activities			93		69		171		181
Total cash outflows from operating activities			7,233		5,807		14,593		12,250
Net cash flows from operating activities			1,045		1,677		2,685		2,881
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments			4,160		396		5,160		396
Cash receipts from investment income			32		0		38		0
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets			8		132		34		168
Net cash receipts from disposal of subsidiaries and other business units			(1)		0		27		0
Total cash inflows from investing activities			4,199		528		5,259		564
Cash payments to acquire fixed assets, intangible assets and other long-term assets			651		1,051		1,550		1,648
Cash payments for investments			4,310		1,955		5,960		1,955
Total cash outflows from investing activities			4,961		3,006		7,510		3,603
Net cash flows from investing activities			(762)		(2,478)		(2,251)		(3,039)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others			0		4,966		0		4,966
Cash receipts from borrowings			985		737		1,515		2,360
Other cash receipts relating to financing activities			0		0		0		347
Total cash inflows from financing activities			985		5,703		1,515		7,673
Cash repayments for debts			988		2,867		1,734		5,529
Cash payments for distribution of dividends or profit and interest expenses			49		71		90		205
Other cash payments relating to financing activities			446		452		589		559
Total cash outflows from financing activities			1,483		3,390		2,413		6,293
Net cash flows from financing activities			(498)		2,313		(898)		1,380
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			59		(15)		57		(8)
NET INCREASE IN CASH AND CASH EQUIVALENTS			(156)		1,497		(407)		1,214
Add: Cash and cash equivalents at beginning of period			2,512		1,884		2,763		2,167
CASH AND CASH EQUIVALENTS AT END OF PERIOD			2,356		3,381		2,356		3,381

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