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Fully Integrated and Optimized Strategies for Growth Propel JCET to Quarterly Highs for Revenue and Profit in Q1 2021

April 29, 2021 - 00:31 By PRNEWSWIRE

Q1 2021 financial highlights:

  • Revenue was RMB 6.71 billion. It was an increase of 17.6% year on year and a record high first quarter in the company's history.
  • Generated RMB 1.20 billion cash from operations, up 4.9% year on year. With net capex investments of RMB 0.56 billion, free cash flow for the quarter was RMB 0.64 billion.
  • Net profit was RMB 0.39 billion. A record high first quarter in the company's history with 188.7% year on year growth.
  • Earnings per share was RMB 0.24, as compared to RMB 0.08 in Q1 2020.

SHANGHAI, April 28, 2021 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first quarter of 2021 ended March 31, 2021. According to the financial report, in Q1 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 6.71 billion and net profit of RMB 0.39 billion, which achieved 17.6% and 188.7% year on year growth respectively

In 2020, JCET played on its strengths of unparalleled industry insights and strategies, promoted development with innovation, and improved efficiency led by a world class management team. After nearly two years of resource optimization and integration, JCET's operations are now running in their optimum mode. With a concise development strategy and roadmap in place, as well as a team driven by passion to win, JCET has constructed a solid foundation for growth in 2021.

Mr. Li Zheng, CEO of JCET said, "After reaching new highs in financial performance for 2020, including a net profit more than doubled of the previous 17 years' combined, JCET's earnings and revenue for the first quarter of 2021 again set new records year-over-year. Our continued excellence in R&D, manufacturing and strategic management is the key to our success and positions us well for even better results in 2021."

Ms. Janet Chou, CFO of JCET said: "We achieved record quarterly revenue and profitability. Our gross margin expanded 2.9 percentage points year over year. Our debt leverage ratio decreased to below 2.0. We delivered RMB 0.64 billion free cash flow which demonstrated the strength of our business model. Our outstanding performance reflects solid execution of our growth strategy."

Recently, with a strong recovery underway in the automotive market and an increased demand for deeper collaborative design within the industry supply chain, JCET announced the official opening of its Automotive Electronics Business Center and Design Services Business Center to further enhance the technology innovation advantage. The investment of resources into these two new business units demonstrates JCET's commitment to promoting collaborative and synergistic development across the IC industry and further strengthens its position for continued growth.

For more information, please refer to JCET Q1FY2021 report.

 

                                                            

CONSOLIDATED BALANCE SHEET (Unaudited)   


RMB in millions








As of


ASSETS


Mar 31, 2021


Dec 31, 2020


Current assets






  Currency funds


1,913


2,235


  Trading financial assets


5


5


  Derivative financial assets


0


8


  Accounts receivable


3,458


3,846


  Receivables financing


58


41


  Prepayments


190


158


  Other receivables


26


41


  Inventories


2,650


2,946


  Other current assets


83


149


Total current assets


8,383


9,429


Non-current assets






  Long-term receivables


40


42


  Long-term equity investments


948


949


  Other equity investments


432


430


  Investment properties


95


96


  Fixed assets


18,065


17,790


  Construction in progress


689


866


  Right-of-use assets


709


0


  Intangible assets


477


526


  Goodwill


2,086


2,071


  Deferred tax assets


106


128


  Other non-current assets


1


1


Total non-current assets


23,648


22,899


Total assets


32,031


32,328


                                                 

 

 

CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited)


RMB in millions








As of


LIABILITIES AND EQUITY 


Mar 31, 2021


Dec 31, 2020


Current liabilities






  Short-term borrowings


4,477


5,288


  Derivative financial liabilities


7


0


  Notes payable


449


513


  Accounts payable


4,155


4,499


  Contract liabilities


271


173


  Employee benefits payable


664


858


  Taxes and surcharges payable


135


109


  Other payables


232


254


  Current portion of long-term liabilities


2,474


2,131


  Other current liabilities


315


21


Total current liabilities


13,179


13,846


Non-current liabilities






  Long-term borrowings


2,446


2,978


  Bonds payable


999


999


  Lease liabilities


597


0


  Long-term payables


487


592


  Long-term employee benefits payable


7


4


  Deferred income


344


375


  Deferred tax liabilities


129


124


Total non-current liabilities


5,009


5,072


Total liabilities


18,188


18,918


Equity






  Paid-in capital


1,603


1,603


  Surplus reserves


10,242


10,242


  Accumulated other comprehensive income


(36)


(83)


  Specialized reserves


120


120


  Unappropriated profit


1,904


1,518


Total equity attributable to owners of the parent


13,833


13,400


Minority shareholders


10


10


Total equity


13,843


13,410


Total liabilities and equity


32,031


32,328


 

 

 

CONSOLIDATED INCOME STATEMENT (Unaudited)


RMB in millions, except share data








Three months ended




Mar 31, 2021


Mar 31, 2020


Revenue


6,712


5,708


Less: Cost of sales


5,636


4,961


          Taxes and surcharges


20


8


          Selling expenses


49


57


          Administrative expenses


230


209


          Research and development expenses


258


215


          Finance expenses


96


147


            Including: Interest expenses


110


154


                     Interest income


5


9


Add: Other income


41


34


          Investment income / (loss)


(2)


(1)


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


(2)


(1)


          Gain / (loss) on the net position hedging


(2)


(1)


          Credit impairment (loss is expressed by "-")


4


5


          Asset impairment (loss is expressed by "-")


(28)


3


          Gain / (loss) on disposal of assets


6


4


Operating profit / (loss)


442


155


Less: Non-operating expenses


2


6


Profit / (loss) before income taxes


440


149


Less: Income tax expenses


53


15


Net profit / (loss)


387


134


Classified by continuity of operations






  Profit / (loss) from continuing operations


387


134


Classified by ownership






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


386


134


  Net profit / (loss) attributable to minority shareholders


1


0


Add: Unappropriated profit at beginning of period


1,518


231


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


1,904


365


 

 

 

CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited)


RMB in millions, except share data






Three months ended



Mar 31, 2021


Mar 31, 2020

Other comprehensive income, net of tax


47


131

Comprehensive income attributable to owners of the
parent


47


131

Comprehensive income not be reclassified to profit or loss


1


0

  Remeasurement gains or losses of a defined benefit
plan


1


0

Comprehensive income to be reclassified to profit or loss


46


131

  Cash flow hedge reserve


(10)


(2)

  Exchange differences of foreign currency financial
statements


56


133

Total comprehensive income


434


265

  Including:





     Total comprehensive income attributable to owners
of the parent


433


265

     Total comprehensive income attributable to minority
shareholders


1


0

Earnings per share





  Basic earnings per share


0.24


0.08

  Diluted earnings per share


0.24


0.08

 

 

 

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)


RMB in millions








Three months ended




Mar 31, 2021


Mar 31, 2020


CASH FLOWS FROM OPERATING ACTIVITIES






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


7,439


6,035


Receipts of taxes and surcharges refunds


157


223


Other cash receipts relating to operating activities


51


293


Total cash inflows from operating activities


7,647


6,551


Cash payments for goods and services


5,073


4,225


Cash payments to and on behalf of employees


1,128


959


Payments of all types of taxes and surcharges


130


90


Other cash payments relating to operating activities


112


128


Total cash outflows from operating activities


6,443


5,402


Net cash flows from operating activities


1,204


1,149


CASH FLOWS FROM INVESTING ACTIVITIES






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


36


7


Total cash inflows from investing activities


36


7


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


597


678


Total cash outflows from investing activities


597


678


Net cash flows from investing activities


(561)


(671)


 

 

 

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)


RMB in millions








Three months ended




Mar 31, 2021


Mar 31, 2020


CASH FLOWS FROM FINANCING ACTIVITIES






Cash receipts from borrowings


1,623


5,931


Other cash receipts relating to financing activities


347


0


Total cash inflows from financing activities


1,970


5,931


Cash repayments for debts


2,662


5,748


Cash payments for distribution of dividends or profit and
interest expenses


134


164


Other cash payments relating to financing activities


107


174


Total cash outflows from financing activities


2,903


6,086


Net cash flows from financing activities


(933)


(155)


EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS


7


22


NET INCREASE IN CASH AND CASH EQUIVALENTS


(283)


345


Add: Cash and cash equivalents at beginning of period


2,167


1,866


CASH AND CASH EQUIVALENTS AT END OF PERIOD


1,884


2,211