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JCET Innovation and Manufacturing Strategies Deliver Record High Revenue for FY2020 with Profits Twice the Total of the Last 17 Years

April 28, 2021 - 23:21 By PRNEWSWIRE

Fourth Quarter and Fiscal Year 2020 Financial Results:

  • Fourth-quarter revenue was RMB 7.70 billion. On a comparable basis, taking into account the accounting change in revenue recognition, it was an increase of 17.6% year on year (see note 1).
  • Full-year revenue was RMB 26.46 billion. On a comparable basis, taking into account the accounting change in revenue recognition, it was an increase of 28.2% year on year (see note 2).
  • Fourth-quarter cash from operations was RMB 1.80 billion. With net capex investments of RMB 1.01 billion, free cash flow for the quarter was RMB 0.79 billion.
  • Full-year cash from operations was RMB 5.43 billion, up 71.1% year on year. With net capex investments of RMB 3.01 billion, free cash flow for the year was RMB 2.42 billion.
  • Fourth-quarter net profit was RMB 0.54 billion. Full-year net profit was RMB 1.30 billion, a record high in the company's history.
  • Earnings per share was RMB 0.34 in the fourth quarter and RMB 0.81 for the full year, as compared to RMB 0.17 in Q4 2019 and RMB 0.06 in 2019 respectively.

Note 1: During the reporting period, we optimized the business model for the purchase and sale of certain packaged products, of which JCET Group no longer bears the general inventory risk on the main raw materials. In accordance with PRC GAAP, both revenue and costs of goods sold were recorded on the net basis and decreased by RMB 0.92 billion respectively. This change had no impact on the company's net profit. Assuming that revenue was still recognized by the gross method (should be recorded on the net basis according to PRC GAAP), it would be RMB 8.62 billion, an increase of 17.6% over the same period last year.

Note 2: During the reporting period, we optimized the business model for the purchase and sale of certain packaged products, of which JCET Group no longer bears the general inventory risk on the main raw materials. In accordance with PRC GAAP, both revenue and costs of goods sold were recorded on the net basis and decreased by RMB 3.70 billion respectively. This change had no impact on the company's net profit. Assuming that revenue was still recognized by the gross method (should be recorded on the net basis according to PRC GAAP), it would be RMB 30.16 billion, an increase of 28.2% over the same period last year.

 

SHANGHAI, April 28, 2021 /PRNewswire/ -- JCET (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, 2020. According to the financial report, in 2020, JCET achieved solid and rapid growth with strong profitability, with revenue of RMB 26.46 billion and net profit of RMB 1.30 billion.

The demand for semiconductor products was historically strong in 2020, driven by the rapid development and integration of 5G and AI. JCET was poised and ready for this opportunity, delivering a record level performance for FY2020 by successfully optimizing and integrating the technology, management and production capacity resources of its domestic and international manufacturing hubs and R&D centers. JCET also leveraged its years of accumulated industry know-how and continued expanding its investment in both R&D and talent development, resulting in a year-on-year increase of 5.2% in R&D expenditure and 154 new patents.  JCET's core technologies include advanced packaging technologies such as System-in-Package (SiP), high-density flip-chip and wafer-level-packaging (WLP), providing innovative solutions for 5G communication, automotive, high-performance computing, storage and other demanding applications. During FY2020, the cumulative number of JCET patents grew to 3,238. The expansion of intellectual property has created a solid foundation for future innovations that will be needed to meet the unique and complex demands of the market.

Mr. Li Zheng, CEO of JCET said, "With over 50 years of OSAT industry experiences, JCET is now firmly positioned as a tier-1 global IC manufacturing and service provider.  With the support and guidance from our new board of directors, the company has successfully optimized and integrated our technology, talent and production recourses throughout our operations around the world. We have made significant investments to continue developing innovative packaging technologies as well as assembly and test manufacturing processes. These strategic initiatives led to our record breaking performance in 2020 and have also positioned us well for the opportunities that lie ahead of us in 2021!"

Ms. Janet Chou, CFO of JCET said, "We delivered record level annual revenue, profit and free cash flows in 2020. The net profit for the year was approximately twice the sum of the net profits for the 17 years since the public listing of JCET. We strengthened our balance sheet with significant improvements in our key financial metrics. We announced a common stock dividend of RMB 0.05 per share. Our focus on advanced packaging technologies is paying off."

In the post-Moore era, technical collaboration across the IC industry chain is becoming more and more important. As a leading supplier in the IC industry, JCET continues operating by its core value of "win-win cooperation" and is committed to promoting the collaborative development of the supply chain to enable the semiconductor industry to successfully overcome the challenges created by the growing demands of the market.

For more information, please refer to JCET FY2020 report.

CONSOLIDATED BALANCE SHEET (Audited)



RMB in millions




As of

ASSETS



Dec 31, 2020


Dec 31, 2019

Current assets






  Currency funds



2,235


2,569

  Trading financial assets



5


0

  Derivative financial assets



8


4

  Accounts receivable



3,846


3,350

  Receivables financing



41


68

  Prepayments



158


188

  Other receivables



41


11

  Inventories



2,946


2,731

  Current portion of non-current assets



0


137

  Other current assets



149


501

Total current assets



9,429


9,559

Non-current assets






  Long-term receivables



42


40

  Long-term equity investments



949


972

  Other equity investments



430


517

  Investment properties



96


100

  Fixed assets



17,790


17,799

  Construction in progress



866


1,664

  Intangible assets



526


587

  Goodwill



2,071


2,214

  Long-term prepaid expenses



0


1

  Deferred tax assets



128


128

  Other non-current assets



1


1

Total non-current assets



22,899


24,023

Total assets



32,328


33,582

 

 


CONSOLIDATED BALANCE SHEET (CONTINUED) (Audited)



RMB in millions




As of

LIABILITIES AND EQUITY 



Dec 31, 2020


Dec 31, 2019

Current liabilities






  Short-term borrowings



5,288


9,098

  Derivative financial liabilities



0


161

  Notes payable



513


958

  Accounts payable



4,499


4,618

  Receipts in advance



0


113

  Contract liabilities



173


0

  Employee benefits payable



858


586

  Taxes and surcharges payable



109


53

  Other payables



254


235

  Current portion of long-term liabilities



2,131


1,827

  Other current liabilities



21


0

Total current liabilities



13,846


17,649

Non-current liabilities






  Long-term borrowings



2,978


1,585

  Bonds payable



999


0

  Long-term payables



592


1,216

  Long-term employee benefits payable



4


1

  Deferred income



375


337

  Deferred tax liabilities



124


156

Total non-current liabilities



5,072


3,295

Total liabilities



18,918


20,944

Equity






  Paid-in capital



1,603


1,603

  Surplus reserves



10,242


10,242

  Accumulated other comprehensive income



(83)


429

  Specialized reserves



120


122

  Unappropriated profit



1,518


231

Total equity attributable to owners of the parent



13,400


12,627

Minority shareholders



10


11

Total equity



13,410


12,638

Total liabilities and equity



32,328


33,582

 

 

CONSOLIDATED INCOME STATEMENT (Audited)


RMB in millions, except share data



Three months ended


 Year ended



Dec 31, 2020


Dec 31, 2019


Dec 31, 2020


Dec 31, 2019

Revenue


7,701


7,330


26,464


23,526

Less: Cost of sales


6,512


6,388


22,374


20,895

          Taxes and surcharges


20


10


48


37

          Selling expenses


50


67


225


265

          Administrative expenses


350


230


1,037


1,044

          Research and development expenses


252


393


1,020


969

          Finance expenses


152


213


634


870

            Including: Interest expenses


136


153


569


742

                     Interest income


11


7


42


27

Add: Other income


88


79


185


296

          Investment income / (loss)


6


6


(2)


7

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


(3)


3


(11)


4

          Gain / (loss) on the net position hedging


(5)


(14)


(4)


(13)

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


39


(86)


67


(86)

          Credit impairment (loss is expressed by "-")


1


(29)


(7)


(35)

          Asset impairment (loss is expressed by "-")


(62)


(219)


(87)


(234)

          Gain / (loss) on disposal of assets


126


730


168


744

Operating profit / (loss)


558


496


1,446


125

Add: Non-operating income


3


6


6


6

Less: Non-operating expenses


3


47


21


51

Profit / (loss) before income taxes


558


455


1,431


80

Less: Income tax expenses


17


178


125


(17)

Net profit / (loss)


541


277


1,306


97

Classified by continuity of operations









  Profit / (loss) from continuing operations


541


277


1,306


97

Classified by ownership









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


540


271


1,304


89

  Net profit / (loss) attributable to minority shareholders


1


6


2


8

Add: Unappropriated profit at beginning of period


994


(40)


231


142

Less: Other reductions


16


0


17


0

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


1,518


231


1,518


231

 

 

 

CONSOLIDATED INCOME STATEMENT (CONTINUED) (Audited) 


RMB in millions, except share data



Three months ended


 Year ended



Dec 31, 2020


Dec 31, 2019


Dec 31, 2020


Dec 31, 2019

Other comprehensive income, net of tax


(308)


(42)


(505)


156

Comprehensive income attributable to owners of the
parent


(308)


(42)


(505)


156

Comprehensive income not be reclassified to profit or loss


(40)


10


(50)


10

  Remeasurement gains or losses of a defined benefit plan


(2)


(1)


(2)


(1)

  Change in the fair value of other equity investments


(38)


11


(48)


11

Comprehensive income to be reclassified to profit or loss


(268)


(52)


(455)


146

  Cash flow hedge reserve


(3)


(1)


(1)


3

  Exchange differences of foreign currency financial statements


(265)


(51)


(454)


143

Total comprehensive income


233


235


801


253

  Including:









     Total comprehensive income attributable to owners of
the parent


232


229


799


245

     Total comprehensive income attributable to minority
shareholders


1


6


2


8

Earnings per share









  Basic earnings per share


0.34


0.17


0.81


0.06

  Diluted earnings per share


0.34


0.17


0.81


0.06

 

 

 

CONSOLIDATED CASH FLOW STATEMENT (Audited)


RMB in millions, except share data



Three months ended


 Year ended



Dec 31, 2020


Dec 31, 2019


Dec 31, 2020


Dec 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES









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


7,989


7,548


27,350


24,199

Receipts of taxes and surcharges refunds


(42)


354


486


651

Other cash receipts relating to operating activities


139


120


905


396

Total cash inflows from operating activities


8,086


8,022


28,741


25,246

Cash payments for goods and services


4,891


5,009


18,475


17,385

Cash payments to and on behalf of employees


1,143


1,067


3,787


3,766

Payments of all types of taxes and surcharges


186


(158)


499


253

Other cash payments relating to operating activities


63


290


545


666

Total cash outflows from operating activities


6,283


6,208


23,306


22,070

Net cash flows from operating activities


1,803


1,814


5,435


3,176

CASH FLOWS FROM INVESTING ACTIVITIES









Cash receipts from returns of investments


6


(30)


12


73

Cash receipts from investment income


9


31


9


32

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


253


23


318


68

Net cash receipts from disposal of subsidiaries and other
business units


56


0


56


0

Other cash receipts relating to investing activities


81


0


81


20

Total cash inflows from investing activities


405


24


476


193

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


1,268


647


3,330


2,803

Cash payments for investments


5


0


5


0

Total cash outflows from investing activities


1,273


647


3,335


2,803

Net cash flows from investing activities


(868)


(623)


(2,859)


(2,610)

 

 

 

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Audited)


RMB in millions, except share data



Three months ended


 Year ended



Dec 31, 2020


Dec 31, 2019


Dec 31, 2020


Dec 31, 2019

CASH FLOWS FROM FINANCING ACTIVITIES









Cash receipts from borrowings


5,775


3,437


15,725


14,280

Other cash receipts relating to financing activities


0


238


0


2,118

Total cash inflows from financing activities


5,775


3,675


15,725


16,398

Cash repayments for debts


5,738


4,687


16,190


17,300

Cash payments for distribution of dividends or profit and
interest expenses


189


57


614


726

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


3


0


3


0

Other cash payments relating to financing activities


676


545


1,167


1,311

Total cash outflows from financing activities


6,603


5,289


17,971


19,337

Net cash flows from financing activities


(828)


(1,614)


(2,246)


(2,939)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS


4


(10)


(29)


33

NET INCREASE IN CASH AND CASH EQUIVALENTS


111


(433)


301


(2,340)

Add: Cash and cash equivalents at beginning of period


2,056


2,299


1,866


4,206

CASH AND CASH EQUIVALENTS AT END OF PERIOD


2,167


1,866


2,167


1,866