JCET Innovation and Manufacturing Strategies Deliver Record High Revenue for FY2020 with Profits Twice the Total of the Last 17 Years
AsiaNet 89268
SHANGHAI, April 28, 2021 /PRNewswire=KYODO JBN/ --
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.
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
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 (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
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 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
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 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
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
SOURCE: JCET Group
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