JCET Group: JCET Q2 2024 Net Profit Attributable to the Parent Increased by 258% Quarter-on-Quarter, Hitting a Record High for Revenue

Q2 2024 Financial Highlights:

• Revenue was RMB 8.64 billion, an increase of 36.9% year-on-year and 26.3% quarter-on-quarter. A record high Q2 in the company's history.
• Generated RMB 1.65 billion cash from operations. With net capex investments of RMB 0.93 billion, free cash flow for the quarter was RMB 0.72 billion.
• Net profit attributable to owners of the parent was RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter.
• Earnings per share was RMB 0.27, as compared to RMB 0.22 in Q2 2023.

1H 2024 Financial Highlights:

• Revenue was RMB 15.49 billion, an increase of 27.2% year-on-year.
• Generated RMB 3.03 billion cash from operations. With net capex investments of RMB 1.87 billion, free cash flow for the first half of 2024 was RMB 1.16 billion.
• Net profit attributable to owners of the parent was RMB 0.62 billion, an increase of 25.0% year-on-year.
• Earnings per share was RMB 0.35, as compared to RMB 0.28 in 1H 2023.

SHANGHAI, Aug. 23, 2024 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, announced its financial results for the first half year of 2024. The financial report shows that in the first half of 2024, JCET achieved revenue of RMB 15.49 billion, and net profit attributable to owners of the parent of RMB 0.62 billion, both increased over 25%. In Q2 2024 JCET achieved revenue of RMB 8.64 billion, an increase of 36.9% year-on-year, a record high Q2 in the company's history, and net profit attributable to owners of the parent of RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter, generating RMB 1.65 billion cash from operations.

During the reporting period, the company's capacity utilization has significantly increased, with enlarged investment to expand production capacity of core production lines. In the first half of the year, the revenue of communications, computing, and consumer electronics businesses increased respectively by 48%, 23%, and 33% year-on-year. The company is consistently strengthening the research and development in advanced packaging technologies, with R&D investment of RMB 0.82 billion in 1H 2024, a year-on-year increase of 22.4%.

JCET is also actively promoting strategic projects to enhance its smart manufacturing. After two years construction, the new advanced packaging factory "JCET Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Base" with an area of over 130,000 square meters is progressing with equipment mobilization. The new automotive chip back-end manufacturing base has completed building the factory structure. The acquisition of a high-density memory chip packaging factory has obtained necessary approvals, and the project is progressing towards completion.

Mr. Li Zheng, CEO of JCET, said, "JCET actively promotes innovative applications of advanced packaging technologies and continues to expand its production capacity in China, Singapore and South Korea, with steady growth in performance in the first half of 2024. The company will continue to increase investment in R&D and strategic projects, strengthen innovation cooperation in the industrial chain and sustainable development, and create higher value for shareholders, customers, employees and society."

For more information, please refer to the JCET 1H FY2024 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 industrial, through advanced wafer-level packaging, 2.5D/3D, System-in-Package, and reliable flip chip and wire bonding technologies. JCET Group has two R&D centers in China and Korea, eight manufacturing locations in China, Korea, and Singapore, and sales centers around the world, providing close technology collaboration and efficient supply-chain manufacturing to our global customers.

CONSOLIDATED BALANCE SHEET (Unaudited)							RMB in millions
							Jun 30, 2024		Dec 31, 2023
ASSETS
Current assets
Currency funds							10,621		7,325
Trading financial assets							1,605		2,306
Derivative financial assets							0		4
Accounts receivable							4,066		4,185
Receivables financing							71		38
Prepayments							132		104
Other receivables							115		87
Inventories							3,408		3,195
Other current assets							393		375
Total current assets							20,411		17,619
Non-current assets
Long-term receivables							31		33
Long-term equity investments							666		695
Other equity investments							434		447
Investment properties							84		86
Fixed assets							18,408		18,744
Construction in progress							2,039		1,053
Right-of-use assets							519		563
Intangible assets							659		662
Goodwill							2,262		2,248
Long-term prepaid expenses							13		17
Deferred tax assets							377		364
Other non-current assets							66		48
Total non-current assets							25,558		24,960
Total assets							45,969		42,579
LIABILITIES AND EQUITY							Jun 30, 2024		Dec 31, 2023
Current liabilities
Short-term borrowings							467		1,696
Derivative financial liabilities							2		0
Notes payable							300		223
Accounts payable							5,773		4,782
Contract liabilities							260		185
Employee benefits payable							732		781
Taxes and surcharges payable							116		167
Other payables							368		354
Current portion of long-term liabilities							1,806		1,491
Other current liabilities							2		3
Total current liabilities							9,826		9,682
Non-current liabilities
Long-term borrowings							7,749		5,777
Lease liabilities							480		530
Long-term payables							3		0
Long-term employee benefits payable							14		14
Deferred income							438		384
Other non-current liabilities							38		41
Total non-current liabilities							8,722		6,746
Total liabilities							18,548		16,428
Equity
Paid-in capital							1,789		1,789
Capital reserves							15,228		15,237
Accumulated other comprehensive income							591		543
Specialized reserves							1		0
Surplus reserves							257		257
Unappropriated profit							8,680		8,239
Total equity attributable to owners of the parent							26,546		26,065
Minority shareholders							875		86
Total equity							27,421		26,151
Total liabilities and equity							45,969		42,579
CONSOLIDATED INCOME STATEMENT (Unaudited)							RMB in millions, except share data
			Three months ended				Six months ended
			Jun 30, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Revenue			8,645		6,313		15,487		12,173
Less: Cost of sales			7,410		5,359		13,417		10,525
Taxes and surcharges			22		27		35		47
Selling expenses			64		51		118		100
Administrative expenses			209		175		433		347
Research and development expenses			438		360		819		669
Finance expenses			(19)		(7)		(11)		51
Including: Interest expenses			99		68		192		131
Interest income			80		27		141		35
Add: Other income			47		40		86		73
Investment income / (loss)			(4)		(24)		(14)		(21)
Including: Income / (loss) from investments in associates and joint ventures			(12)		(10)		(29)		(21)
Gain / (loss) on changes in fair value of financial assets/liabilities			0		37		(5)		46
Credit impairment (loss is expressed by "-")			(14)		(6)		(7)		(1)
Asset impairment (loss is expressed by "-")			(20)		(5)		(38)		0
Gain / (loss) on disposal of assets			2		13		5		16
Operating profit / (loss)			532		403		703		547
Add: Non-operating income			0		2		1		3
Less: Non-operating expenses			2		0		2		4
Profit / (loss) before income taxes			530		405		702		546
Less: Income tax expenses			47		19		85		50
Net profit / (loss)			483		386		617		496
Classified by continuity of operations
Profit / (loss) from continuing operations			483		386		617		496
Classified by ownership
Net profit / (loss) attributable to owners of the parent			484		386		619		496
Net profit / (loss) attributable to minority shareholders			(1)		0		(2)		0
Add: Unappropriated profit at beginning of period			8,374		7,264		8,239		7,154
Less: Cash dividends declared			178		358		178		358
Unappropriated profit at end of period (attributable to owners of the parent)			8,680		7,292		8,680		7,292
Other comprehensive income, net of tax			36		481		48		350
Comprehensive income attributable to owners of the parent			36		481		48		350
Comprehensive income not be reclassified to profit or loss			(8)		6		(13)		17
Remeasurement gains or losses of a defined benefit plan			0		0		0		1
Change in the fair value of other equity investments			(8)		6		(13)		16
Comprehensive income to be reclassified to profit or loss			44		475		61		333
Exchange differences of foreign currency financial statements			44		475		61		333
Total comprehensive income			519		867		665		846
Including:
Total comprehensive income attributable to owners of the parent			520		867		667		846
Total comprehensive income attributable to minority shareholders			(1)		0		(2)		0
Earnings per share
Basic earnings per share			0.27		0.22		0.35		0.28
Diluted earnings per share			0.27		0.22		0.35		0.28
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)							RMB in millions
			Three months ended				Six months ended
			Jun 30, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services			8,784		6,178		16,590		13,162
Receipts of taxes and surcharges refunds			81		122		198		216
Other cash receipts relating to operating activities			181		110		283		163
Total cash inflows from operating activities			9,046		6,410		17,071		13,541
Cash payments for goods and services			6,078		4,069		11,254		8,454
Cash payments to and on behalf of employees			1,056		878		2,248		2,072
Payments of all types of taxes and surcharges			197		254		289		466
Other cash payments relating to operating activities			61		22		253		128
Total cash outflows from operating activities			7,392		5,223		14,044		11,120
Net cash flows from operating activities			1,654		1,187		3,027		2,421
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments			4,800		4,350		9,050		8,280
Cash receipts from investment income			2		38		15		52
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets			2		7		5		32
Total cash inflows from investing activities			4,804		4,395		9,070		8,364
Cash payments to acquire fixed assets, intangible assets and other long-term assets			937		749		1,870		1,588
Cash payments for investments			4,650		3,200		8,350		5,980
Total cash outflows from investing activities			5,587		3,949		10,220		7,568
Net cash flows from investing activities			(783)		446		(1,150)		796
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others			6		230		776		230
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries			0		86		765		86
Cash receipts from borrowings			728		1,317		3,007		1,664
Total cash inflows from financing activities			734		1,547		3,783		1,894
Cash repayments for debts			657		755		1,963		1,740
Cash payments for distribution of dividends or profit and interest expenses			272		414		352		467
Other cash payments relating to financing activities			34		16		53		48
Total cash outflows from financing activities			963		1,185		2,368		2,255
Net cash flows from financing activities			(229)		362		1,415		(361)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			2		45		4		37
NET INCREASE IN CASH AND CASH EQUIVALENTS			644		2,040		3,296		2,893
Add: Cash and cash equivalents at beginning of period			9,977		3,306		7,325		2,453
CASH AND CASH EQUIVALENTS AT END OF PERIOD			10,621		5,346		10,621		5,346

Logo - https://mma.prnewswire.com/media/1711480/JCET_Logo_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/jcet-q2-2024-net-profit-attributable-to-the-parent-increased-by-258-quarter-on-quarter-hitting-a-record-high-for-revenue-302229441.html