Focusing on Key Applications of Advanced Packaging, JCET Growth Accelerated Quarter-on-Quarter in Q3 2023

Q3 2023 Financial Highlights:

  • Revenue was RMB 8.26 billion, an increase of 30.8% quarter-on-quarter
  • Net profit was RMB 0.48 billion, an increase of 24% quarter-on-quarter
  • Earnings per share was RMB 0.26

Q3 YTD 2023 Financial Highlights:

  • Revenue was RMB 20.43 billion
  • Net profit was RMB 0.97 billion
  • Earnings per share was RMB 0.54

SHANGHAI, Oct. 27, 2023 /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 third quarter of 2023. The financial report shows that in the third quarter, JCET achieved revenue of RMB 8.26 billion, an increase of 30.8% quarter-on-quarter, and net profit of RMB 0.48 billion, an increase of 24% quarter-on-quarter.

JCET has focused on key applications of advanced packaging this year, continuously enhancing its overall solution capabilities for application scenarios, optimizing production capacity layout, and further strengthening its leading position in the global IC packaging and test industry.

JCET has achieved innovative breakthroughs in markets such as automotive electronics, 5G communications, high-performance computing (HPC), and wide bandgap power devices. Seizing market opportunities driven by the acceleration of the electric vehicle market, JCET’s automotive electronics business has maintained rapid growth. In the first three quarters of this year, the company’s automotive electronics revenue increased by 88% year-on-year. In the 5G communications-related market, JCET provided global customers with services in R&D and HVM, further solidifying its leading position in areas including Antenna in Package (AiP) modules, RF power amplifiers (PA), and radio frequency front end (RFFE) modules.

Leveraging high-density heterogeneous SiP technologies and advantageous global production layouts, JCET intensifies its efforts with customers in AI and HPC domains for advanced packaging solutions development and product introductions, accelerating market expansion in high-computation systems, power management, high-performance storage, and smart terminals. In the power semiconductor market, the high-density integration solutions developed by JCET in collaboration with global customers on wide bandgap power devices are widely used in the automotive and industrial energy storage, with ongoing production capacity expansion.

JCET continues to enhance its technological innovation, with R&D investment of RMB 1.08 billion in the first three quarters of 2023, a year-on-year increase of 10.4%. The company continues to promote the construction of high-performance packaging production capacities and upgrade existing factories towards advanced packaging technologies. In addition, JCET improves lean production capabilities, strengthens inventory control and supply chain management, and ensures that the company’s operations remain highly efficient.

Mr. Li Zheng, CEO of JCET, said, “In recent years, JCET, by focusing on high-performance advanced packaging technologies, has made breakthrough progress in collaboration with major customers on the high-end chip business and achieved significant quarter-on-quarter growth in performance for the third quarter of this year. The company will seize new opportunities arising from the restructuring of the global industrial chain and will continue to promote the healthy development of IC back-end manufacturing.”

Click to view: JCET 2023 Third Quarter 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


















Sep 30, 2023


Dec 31, 2022

ASSETS










Current assets










  Currency funds







4,678


2,459

  Trading financial assets







3,611


4,316

  Derivative financial assets







0


18

  Accounts receivable







4,652


3,689

  Receivables financing







96


59

  Prepayments







130


110

  Other receivables







73


61

  Inventories







4,190


3,152

  Other current assets







303


279

Total current assets







17,733


14,143

Non-current assets










  Long-term receivables







19


40

  Long-term equity investments







731


765

  Other equity investments







449


440

  Investment properties







87


89

  Fixed assets







19,035


19,517

  Construction in progress







1,076


807

  Right-of-use assets







585


578

  Intangible assets







640


483

  Goodwill







2,278


2,210

  Long-term prepaid expenses







20


28

  Deferred tax assets







266


247

  Other non-current assets







88


61

Total non-current assets







25,274


25,265

Total assets







43,007


39,408











LIABILITIES AND EQUITY  







Sep 30, 2023


Dec 31, 2022

Current liabilities










  Short-term borrowings







1,721


1,174

  Derivative financial liabilities







2


0

  Notes payable







162


339

  Accounts payable







6,274


4,634

  Contract liabilities







203


214

  Employee benefits payable







727


984

  Taxes and surcharges payable







189


210

  Other payables







377


378

  Current portion of long-term liabilities







2,468


3,096

  Other current liabilities







4


4

Total current liabilities







12,127


11,033

Non-current liabilities










  Long-term borrowings







4,027


2,721

  Lease liabilities







537


562

  Long-term employee benefits payable







12


14

  Deferred income







375


340

  Deferred tax liabilities







6


40

  Other non-current liabilities







51


55

Total non-current liabilities







5,008


3,732

Total liabilities







17,135


14,765

Equity










  Paid-in capital







1,789


1,780

  Capital reserves







15,316


15,080

  Accumulated other comprehensive income







679


400

  Specialized reserves







2


0

  Surplus reserves







229


229

  Unappropriated profit







7,771


7,154

Total equity attributable to owners of the parent







25,786


24,643

Minority shareholders







86


0

Total equity







25,872


24,643

Total liabilities and equity







43,007


39,408

CONSOLIDATED INCOME STATEMENT (Unaudited)                                                                                                     




RMB in millions, except share data














Three months ended


Nine months ended




Sep 30, 2023


Sep 30, 2022


Sep 30, 2023


Sep 30, 2022

Revenue



8,257


9,184


20,430


24,778

Less: Cost of sales



7,071


7,616


17,596


20,323

          Taxes and surcharges



36


26


82


69

          Selling expenses



55


45


155


142

          Administrative expenses



190


312


536


805

          Research and development expenses



413


343


1,082


980

          Finance expenses



26


(26)


77


(11)

            Including: Interest expenses



84


51


215


143

                     Interest income



35


5


70


21

Add: Other income



103


55


176


138

         Investment income / (loss)



(12)


25


(34)


65

            Including: Income / (loss) from investments in associates and joint ventures



(12)


1


(34)


(6)

         Gain / (loss) on changes in fair value of financial assets/liabilities 



17


(25)


62


(40)

         Credit impairment (loss is expressed by “-“)



(2)


22


(3)


17

         Asset impairment (loss is expressed by “-“)



(26)


(61)


(26)


(125)

         Gain / (loss) on disposal of assets 



5


18


21


41

Operating profit / (loss)



551


902


1,098


2,566

Add: Non-operating income



0


40


3


46

Less: Non-operating expenses



1


0


5


1

Profit / (loss) before income taxes



550


942


1,096


2,611

Less: Income tax expenses



72


33


122


159

Net profit / (loss) 



478


909


974


2,452

Classified by continuity of operations










  Profit / (loss) from continuing operations



478


909


974


2,452

Classified by ownership










  Net profit / (loss) attributable to owners of the parent



478


909


974


2,452

  Net profit / (loss) attributable to minority shareholders



0


0


0


0

Add: Unappropriated profit at beginning of period



7,293


5,522


7,154


4,335

Less: Cash dividends declared



0


0


357


356

Unappropriated profit at end of period (attributable to owners of the parent)



7,771


6,431


7,771


6,431

Other comprehensive income, net of tax



(70)


446


280


832

Comprehensive income attributable to owners of the parent



(70)


446


280


832

Comprehensive income not be reclassified to profit or loss



(7)


(14)


10


(14)

  Remeasurement gains or losses of a defined benefit plan



0


0


1


0

  Change in the fair value of other equity investments



(7)


(14)


9


(14)

Comprehensive income to be reclassified to profit or loss



(63)


460


270


846

  Comprehensive income using the equity method that may be reclassified to profit or loss



0


7


0


0

  Cash flow hedge reserve



0


(9)


0


(26)

  Exchange differences of foreign currency financial statements



(63)


462


270


872

Total comprehensive income



408


1,355


1,254


3,284

  Including:










     Total comprehensive income attributable to owners of the parent



408


1,355


1,254


3,284

     Total comprehensive income attributable to minority shareholders



0


0


0


0

Earnings per share










  Basic earnings per share



0.26


0.51


0.54


1.38

  Diluted earnings per share



0.26


0.51


0.54


1.38

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)                                                                                                                                                          

RMB in millions














Three months ended


Nine months ended




Sep 30, 2023


Sep 30, 2022


Sep 30, 2023


Sep 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES










  Cash receipts from the sale of goods and the rendering of services



7,574


8,201


20,737


25,200

  Receipts of taxes and surcharges refunds



52


126


267


273

  Other cash receipts relating to operating activities



126


87


289


218

Total cash inflows from operating activities



7,752


8,414


21,293


25,691

  Cash payments for goods and services



5,840


5,534


14,293


17,146

  Cash payments to and on behalf of employees



899


948


2,972


3,257

  Payments of all types of taxes and surcharges



180


193


646


694

  Other cash payments relating to operating activities



221


43


349


214

Total cash outflows from operating activities



7,140


6,718


18,260


21,311

Net cash flows from operating activities



612


1,696


3,033


4,380

CASH FLOWS FROM INVESTING ACTIVITIES










  Cash receipts from returns of investments



3,601


3,390


11,881


8,550

  Cash receipts from investment income



15


17


68


55

  Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets



99


76


131


110

  Net cash receipts from disposal of subsidiaries and other business units



0


3


0


30

Total cash inflows from investing activities



3,715


3,486


12,080


8,745

  Cash payments to acquire fixed assets, intangible assets and other long-term assets



845


1,138


2,434


2,688

  Cash payments for investments



5,181


4,101


11,161


10,061

Total cash outflows from investing activities



6,026


5,239


13,595


12,749

Net cash flows from investing activities



(2,311)


(1,753)


(1,515)


(4,004)

CASH FLOWS FROM FINANCING ACTIVITIES










  Cash proceeds from investments by others



32


0


262


0

      Including: Cash receipts from capital contributions from minority shareholders of subsidiaries



0


0


86


0

  Cash receipts from borrowings



4,823


1,446


6,487


2,961

Total cash inflows from financing activities



4,855


1,446


6,749


2,961

  Cash repayments for debts



3,723


796


5,464


2,530

  Cash payments for distribution of dividends or profit and interest expenses



78


405


545


495

  Other cash payments relating to financing activities



22


169


69


758

Total cash outflows from financing activities



3,823


1,370


6,078


3,783

Net cash flows from financing activities



1,032


76


671


(822)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS



(7)


37


30


95

NET INCREASE IN CASH AND CASH EQUIVALENTS



(674)


56


2,219


(351)

Add: Cash and cash equivalents at beginning of period



5,346


2,356


2,453


2,763

CASH AND CASH EQUIVALENTS AT END OF PERIOD



4,672


2,412


4,672


2,412

SOURCE JCET Group


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