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