JCET Accelerates Technology Upgrades and Transformation in 2022, Maintaining a Leading Edge in High Value-added Applications

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JCET Accelerates Technology Upgrades and Transformation in 2022, Maintaining a Leading Edge in High Value-added Applications

Q4 2022 Financial Highlights:

  • Revenue was RMB 8.98 billion, an increase of 4.6% year-on-year.
  • Generated RMB 1.63 billion cash from operations. With net capex investments of RMB 1.24 billion, free cash flow for the quarter was RMB 0.39 billion.
  • Net profit was RMB 0.78 billion.
  • Earnings per share was RMB 0.44, as compared to RMB 0.49 in Q4 2021.

Full Year 2022 Financial Highlights:

  • Revenue was RMB 33.76 billion, an increase of 10.7% year-on-year. A record high in the company's history.
  • Generated RMB 6.01 billion cash from operations. With net capex investments of RMB 3.81 billion, free cash flow was RMB 2.20 billion.
  • Net profit was RMB 3.23 billion, a record high in the company's history.
  • Earnings per share was RMB 1.82, as compared to RMB 1.72 in 2021.

SHANGHAI, March 30, 2023 /PRNewswire/ -- JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its full year financial results for the year ended December 31, 2022. According to the financial report, in 2022 JCET achieved revenue of RMB 33.76 billion, an increase of 10.7% year-on-year, and net profit attributable to owners of the parent of RMB 3.23 billion, an increase of 9.2% year-on-year.

In 2022, JCET's pioneering efforts in advanced packaging and testing technology and manufacturing continued to yield results. The company has honed its core technological capabilities through in-depth collaboration with global customers, forming a differentiating competitive advantage. The company's XDFOI™ high-density multi-dimensional heterogeneous integration chiplet technologies have entered the stage of high volume manufacturing (HVM). The company now provides multiple customers with HVM advanced packaging solutions for 4D millimeter-wave radar. During the reporting period, the profit and revenue contributed by high-performance, high-density system-level packaging technology and fan-out wafer-level packaging technology showed solid growth year-on-year. The revenue share of high-value-added products such as computing electronics and automotive electronics also continued to grow. Revenue from automotive electronics increased by 85% year-on-year in 2022, while computing electronics increased by 46% year-on-year. The company gained more test businesses in areas such as 5G RF, automotive chips, high-performance computing chips, and related business attributing to a revenue increase of 25% year-on-year. Over the past three years, the company has achieved positive free cash flow for 13 consecutive quarters through continuous improvement in profitability and asset structure, improvement in cash flow capacity, and a decrease in its asset-to-liability ratio.

Always being customer-centric, JCET has comprehensively and continuously improved its production and service quality and has been highly recognized by customers and other parties around the world. At the same time, the company continues to optimize its production capacity structure and actively meet customers' medium and long-term needs. The construction of the Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Project has steadily progressed. In order to further strengthen the product research and development capabilities in the field of cutting-edge technology, the company completed an increase of capital to RMB 1 billion for its wholly-owned subsidiary, JCET Management Co., Ltd. The construction of an Industry 4.0 intelligent new plant in the company's South Korea factory has been completed, and the Singapore factory has achieved a series of automated production and technological upgrades.

Mr. Li Zheng, CEO of JCET said, "In 2022, the company overcame adverse external factors such as shrinking demand in the end consumer market, and completed new technology developments in the fields of automotive electronics, high-performance computing, and other fields as well as the HVM of new products from several world-renowned customers, laying a solid foundation for the company's high-quality development in the future. Since the fourth quarter of 2022, the downward pressure on consumer markets such as mobile phones has remained significant, and the global IC industry is still in a typical downward cycle. JCET is actively utilizing its flexible global layout and the adjustment period in which revenue and profit margins are under short-term pressure to accelerate the active transformation of back-end chip manufacturing processes to high performance, as well as the automation and intelligent upgrade of production lines, to provide sufficient preparation for the global market recovery in the near future, and a new round of application demand growth."

For more information, please refer to the JCET 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 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, six 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 (Audited)                                                                









RMB in millions


















Dec 31, 2022


Dec 31, 2021

ASSETS










Current assets










     Currency funds







2,459


2,761

     Trading financial assets







4,316


2,670

     Derivative financial assets







18


5

     Accounts receivable







3,689


4,271

     Receivables financing







59


28

     Prepayments







110


183

     Other receivables







61


77

     Inventories







3,152


3,193

     Assets classified as held for sale







0


99

     Other current assets







279


130

Total current assets







14,143


13,417

Non-current assets










     Long-term receivables







40


38

     Long-term equity investments







765


770

     Other equity investments







440


418

     Investment properties







89


93

     Fixed assets







19,517


18,424

     Construction in progress







807


661

     Right-of-use assets







578


622

     Intangible assets







483


447

     Goodwill







2,210


2,023

     Long-term prepaid expenses







28



     Deferred tax assets







247


185

     Other non-current assets







61


1

Total non-current assets







25,265


23,682

Total assets







39,408


37,099











LIABILITIES AND EQUITY  







Dec 31, 2022


Dec 31, 2021

Current liabilities










     Short-term borrowings







1,174


2,193

     Derivative financial liabilities







0


2

     Notes payable







339


579

     Accounts payable







4,634


5,298

     Contract liabilities







214


458

     Employee benefits payable







984


1,062

     Taxes and surcharges payable







210


235

     Other payables







378


414

     Liabilities classified as held for sale







0


45

     Current portion of long-term liabilities







3,096


1,052

     Other current liabilities







4


3

Total current liabilities







11,033


11,341

Non-current liabilities










      Long-term borrowings







2,721


3,751

      Lease liabilities







562


568

      Long-term employee benefits payable







14


20

      Deferred income







340


337

      Deferred tax liabilities







40


82

      Other non-current liabilities







55


0

Total non-current liabilities







3,732


4,758

Total liabilities







14,765


16,099

Equity










       Paid-in capital







1,780


1,780

       Capital reserves







15,080


14,984

       Accumulated other comprehensive income







400


(281)

       Surplus reserves







229


174

       Unappropriated profit







7,154


4,334

Total equity attributable to owners of the parent







24,643


20,991

Minority shareholders







0


9

Total equity







24,643


21,000

Total liabilities and equity







39,408


37,099

 

CONSOLIDATED INCOME STATEMENT (Audited)                                                                         


RMB in millions, except share data














Three months ended


 Year ended




Dec 31, 2022


Dec 31, 2021


Dec 31, 2022


Dec 31, 2021

Revenue



8,984


8,585


33,762


30,502

Less: Cost of sales



7,688


6,882


28,010


24,887

          Taxes and surcharges



20


19


90


77

          Selling expenses



42


49


184


194

          Administrative expenses



95


299


900


1,042

          Research and development expenses



333


326


1,313


1,186

          Finance expenses



137


29


126


206

            Including: Interest expenses



64


43


207


313

                     Interest income



10


4


31


37

Add: Other income



53


35


191


170

         Investment income / (loss)



63


16


128


315

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



1


(291)


(5)


(6)

         Gain / (loss) on the net position hedging



0


11


0


0

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



3


(12)


(37)


(12)

         Credit impairment (loss is expressed by "-")



17


9


34


23

         Asset impairment (loss is expressed by "-")



(131)


(216)


(257)


(268)

         Gain / (loss) on disposal of assets 



6


2


48


32

Operating profit / (loss)



680


826


3,246


3,170

Add: Non-operating income



2


12


47


18

Less: Non-operating expenses



1


7


2


18

Profit / (loss) before income taxes



681


831


3,291


3,170

Less: Income tax expenses



(98)


(13)


60


210

Net profit / (loss) 



779


844


3,231


2,960

Classified by continuity of operations










  Profit / (loss) from continuing operations



779


844


3,231


2,960

Classified by ownership



0







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



779


843


3,231


2,958

  Net profit / (loss) attributable to minority shareholders



0


1


0


2

Add: Unappropriated profit at beginning of period



6,430


3,544


4,334


1,518

Less: Extract statutory surplus accumulation



55


53


55


53

         Cash dividends payable



0


0


356


89

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



7,154


4,334


7,154


4,334

Other comprehensive income, net of tax



(151)


(120)


680


(197)

Comprehensive income attributable to owners of the parent



(151)


(120)


680


(197)

Comprehensive income not be reclassified to profit or loss



7


(14)


(7)


(13)

  Remeasurement gains or losses of a defined benefit plan



1


(2)


1


(1)

  Change in the fair value of other equity investments



6


(12)


(8)


(12)

Comprehensive income to be reclassified to profit or loss



(158)


(106)


687


(184)

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



0


0


0


(21)

  Cash flow hedge reserve



23


10


(4)


2

  Exchange differences of foreign currency financial statements



(181)


(116)


691


(165)

Total comprehensive income



628


724


3,911


2,763

  Including:










     Total comprehensive income attributable to owners of the parent



628


723


3,911


2,761

     Total comprehensive income attributable to minority shareholders



0


1


0


2

Earnings per share










  Basic earnings per share



0.44


0.49


1.82


1.72

  Diluted earnings per share



0.43


0.49


1.81


1.72

 

CONSOLIDATED CASH FLOW STATEMENT (Audited)                                                                                                                                                          


RMB in millions














Three months ended


 Year ended




Dec 31, 2022


Dec 31, 2021


Dec 31, 2022


Dec 31, 2021

CASH FLOWS FROM OPERATING ACTIVITIES










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



11,033


9,611


36,233


32,445

  Receipts of taxes and surcharges refunds



34


49


307


389

  Other cash receipts relating to operating activities



103


30


321


237

Total cash inflows from operating activities



11,170


9,690


36,861


33,071

  Cash payments for goods and services



8,458


6,031


25,604


20,445

  Cash payments to and on behalf of employees



1,019


937


4,275


4,265

  Payments of all types of taxes and surcharges



(152)


19


543


608

  Other cash payments relating to operating activities



213


68


427


324

Total cash outflows from operating activities



9,538


7,055


30,849


25,642

Net cash flows from operating activities



1,632


2,635


6,012


7,429

CASH FLOWS FROM INVESTING ACTIVITIES










  Cash receipts from returns of investments



4,151


3,281


12,701


6,133

  Cash receipts from investment income



33


20


89


33

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



(3)


10


107


271

  Net cash receipts from disposal of subsidiaries and other business units



0


0


30


0

  Other cash receipts relating to investing activities



0


10


0


10

Total cash inflows from investing activities



4,181


3,321


12,927


6,447

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



1,236


1,345


3,924


4,358

  Cash payments for investments



4,300


4,029


14,361


8,405

Total cash outflows from investing activities



5,536


5,374


18,285


12,763

Net cash flows from investing activities



(1,355)


(2,053)


(5,358)


(6,316)

CASH FLOWS FROM FINANCING ACTIVITIES










  Cash proceeds from investments by others



0


0


0


4,965

  Cash receipts from borrowings



2,255


2,524


5,216


7,153

  Other cash receipts relating to financing activities



0


(347)


0


0

Total cash inflows from financing activities



2,255


2,177


5,216


12,118

  Cash repayments for debts



2,523


3,099


5,053


11,613

  Cash payments for distribution of dividends or profit and interest expenses



29


26


524


392

      Including: Dividends or profit paid to non-controlling shareholders of subsidiaries



0


3


0


3

  Other cash payments relating to financing activities



(71)


(166)


687


605

Total cash outflows from financing activities



2,481


2,959


6,264


12,610

Net cash flows from financing activities



(226)


(782)


(1,048)


(492)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS



(10)


(17)


84


(25)

NET INCREASE IN CASH AND CASH EQUIVALENTS



41


(217)


(310)


596

Add: Cash and cash equivalents at beginning of period



2,412


2,980


2,763


2,167

CASH AND CASH EQUIVALENTS AT END OF PERIOD



2,453


2,763


2,453


2,763

 

 


Source: JCET Group Related Stocks: Shanghai:600584

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