JCET Group Integration Turns Loss to Profit in 2019

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Apr 30, 2020, 04:00 ET

SHANGHAI, April 30, 2020 /PRNewswire/ -- Global leading semiconductor microsystem integration packaging and test provider, JCET Group (SH: 600584) reported the financial results for full year 2019, ended December 31, 2019.

2019 full year financial highlights:

Revenue for the year was RMB 23,526 million, as compared to RMB 23,856 million in 2018.
Generated RMB 3,176 million cash from operations, an increase of 26.6% from 2018. With net capex investments of RMB 2,736 million, free cash flow for the year was RMB 441 million.
Net profit was RMB 89 million, as compared to a loss of 939 million in 2018.
Earnings per share was RMB 0.06, as compared to RMB -0.65 in 2018.

JCET Group CEO Mr. Li Zheng said, "JCET Group is gradually realizing the synergy among the companies under the group with a series of integration and adjustment measures implemented. Our portfolio of technologies, capabilities and capacities match the needs of customers and the market more appropriately. JCET Group is working aggressively on advancements in R&D, production and operations and has made significant progress. In 2019, JCET Group gained a profit of RMB 89 million, which is a qualitative improvement compared with 2018. Our achievements are closely connected with our customers' recognition of JCET Group's brand, quality, service and technical capabilities."

JCET Group is an industry leader in the development of advanced packaging technologies, with a comprehensive portfolio of technical products and complete full turnkey services for our customers all over the world. Benefiting from both the semiconductor industry's continued rapid growth and recognition by customers of the company's brand and consistent outstanding quality, JCET Group ranks near the top of the global semiconductor packaging and test industry. With the 5G era ramping up, JCET Group will continue to invest in the development of solutions for 5G communication, mobile terminals, automotive electronics, big data memory, AI and IoT industries, while closely aligning with customers to achieve mutual success.

JCET Group 2019 Annual Report

About JCET Group:

JCET Group is a leading global semiconductor microsystem integration packaging and test 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 three R&D centers, six manufacturing locations in China, Singapore and Korea, 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
31 December 2019
Expressed in Renminbi Yuan

ASSETS	31 December 2019	31 December 2018
Current assets
Currency funds	2,569,393,396.00	4,774,269,922.92
Derivative financial assets	4,119,413.24	1,922,363.72
Notes receivable	0.00	91,323,124.65
Accounts receivable	3,349,731,893.13	2,779,382,584.24
Receivables financing	67,584,630.96	0.00
Prepayments	187,863,377.10	197,362,287.60
Other receivables	10,944,727.48	151,613,133.40
Inventories	2,730,914,425.68	2,273,584,896.44
Current portion of non-current assets	137,458,152.98	124,238,367.69
Other current assets	501,350,372.47	511,684,443.56
Total current assets	9,559,360,389.04	10,905,381,124.22
Non-current assets
Available-for-sale financial assets	0.00	405,909,682.09
Long-term receivables	40,222,976.53	47,130,045.11
Long-term equity investments	971,660,594.36	190,369,225.77
Other equity investments	517,049,881.56	0.00
Investment properties	99,877,458.60	117,526,718.28
Fixed assets	17,798,818,045.91	16,179,209,690.65
Construction in progress	1,664,082,709.03	3,453,861,241.82
Intangible assets	586,737,281.83	635,188,017.08
Goodwill	2,213,786,772.01	2,271,301,559.78
Long-term prepaid expenses	1,256,235.80	772,851.48
Deferred tax assets	128,106,315.77	83,600,496.22
Other non-current assets	934,907.57	137,150,377.86
Total non-current assets	24,022,533,178.97	23,522,019,906.14
Total assets	33,581,893,568.01	34,427,401,030.36

CONSOLIDATED BALANCE SHEET (CONTINUED)
31 December 2019
Expressed in Renminbi Yuan

LIABILITIES AND EQUITY	31 December 2019	31 December 2018
Current liabilities
Short-term borrowings	9,098,056,842.77	7,128,699,854.55
Derivative financial liabilities	160,941,443.47	137,935,110.87
Notes payable	958,145,682.25	650,097,598.13
Accounts payable	4,617,703,102.89	4,169,887,317.71
Receipts in advance	112,646,926.13	112,808,250.03
Employee benefits payable	586,441,964.86	453,301,515.12
Taxes and surcharges payable	53,226,873.84	109,398,233.53
Other payables	235,425,281.38	362,555,207.79
Current portion of non-current liabilities	1,826,772,611.88	5,280,194,159.04
Total current liabilities	17,649,360,729.47	18,404,877,246.77
Non-current liabilities
Long-term borrowings	1,584,384,891.47	2,933,790,044.10
Long-term payables	1,215,622,628.92	329,090,257.01
Long-term employee benefits payable	1,405,672.34	815,921.74
Deferred income	336,470,799.39	269,351,180.54
Deferred tax liabilities	156,293,450.06	165,407,393.44
Other non-current liabilities	0.00	28,904,903.75
Total non-current liabilities	3,294,177,442.18	3,727,359,700.58
Total liabilities	20,943,538,171.65	22,132,236,947.35
Equity
Paid-in capital	1,602,874,555.00	1,602,874,555.00
Surplus reserves	10,242,039,552.06	10,242,498,350.42
Accumulated other comprehensive income	428,946,927.71	181,944,546.61
Specialized reserves	122,283,975.32	122,283,975.32
Unappropriated profit	231,285,970.34	142,622,532.75
Total equity attributable to owners of the parent	12,627,430,980.43	12,292,223,960.10
Minority shareholders	10,924,415.93	2,940,122.91
Total equity	12,638,355,396.36	12,295,164,083.01
Total liabilities and equity	33,581,893,568.01	34,427,401,030.36

CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2019
Expressed in Renminbi Yuan

	For The Year Ended of December 31
	2019	2018
Revenue	23,526,279,785.46	23,856,487,366.62
Less: Cost of sales	20,895,116,352.45	21,130,758,310.68
Taxes and surcharges	36,665,583.88	45,921,812.58
Selling expenses	264,828,644.36	285,371,372.61
Administrative expenses	1,043,776,803.88	1,110,520,305.93
Research and development expenses	968,754,249.66	888,385,192.40
Finance expenses	870,112,601.50	1,131,025,122.06
Including: Interest expenses	742,065,949.87	907,841,772.96
Interest income	26,537,653.94	35,134,730.03
Add: Other income	296,061,195.13	154,847,121.45
Investment income	6,828,037.45	452,297,019.16
Including: Income from investments in associates and joint ventures (loss is expressed by "-")	4,341,593.44	-695,341.67
Loss on the net position hedging (loss is expressed by "-")	-13,428,960.03	0.00
Loss on changes in fair value (loss is expressed by "-")	-86,233,054.18	-123,367,191.19
Credit impairment losses (loss is expressed by "-")	-34,827,911.59	0.00
Asset Impairment losses (loss is expressed by "-")	-233,928,751.44	-546,919,999.29
Profit/Loss on disposal of assets (loss is expressed by "-")	743,480,368.26	-5,200,932.93
Operating profit/(loss)	124,976,473.33	-803,838,732.44
Add: Non-operating income	6,240,343.02	9,863,684.62
Less: Non-operating expenses	50,846,499.16	19,020,577.91
Profit/(loss) before income taxes	80,370,317.19	-812,995,625.73
Less: Income tax expenses	-16,277,413.42	113,644,871.50
Net Profit/(loss)	96,647,730.61	-926,640,497.23
Classified by continuity of operations
Profit/(loss) from continuing operations	96,647,730.61	-926,640,497.23
Classified by ownership
Net Profit/(loss) attributable to owners of the parent	88,663,437.59	-939,315,302.79
Net Profit/(loss) attributable to minority shareholders	7,984,293.02	12,674,805.56

CONSOLIDATED INCOME STATEMENT (CONTINUED)
Year ended 31 December 2019
Expressed in Renminbi Yuan

	For The Year Ended of December 31
	2019	2018
Other comprehensive income, net of tax	156,601,051.39	226,297,220.02
Comprehensive income attributable to owners of the parent	156,601,051.39	226,161,283.69
1. Comprehensive income not be reclassified to profit or loss	10,045,132.01	-2,614,766.63
Remeasurement gains or losses of a defined benefit plan	-522,237.30	-2,614,766.63
Change in the fair value of other equity investments	10,567,369.31	0.00
2. Comprehensive income to be reclassified to profit or loss	146,555,919.38	228,776,050.32
Comprehensive income using the equity method	179,917.20	351,355.06
Cash flow hedge reserve	3,100,955.92	-17,194,190.53
Exchange differences of foreign currency financial statements	143,275,046.26	245,618,885.79
Comprehensive income attributable to minority shareholders	0.00	135,936.33
Total comprehensive income	253,248,782.00	-700,343,277.21
Including:
Total comprehensive income attributable to owners of the parent	245,264,488.98	-713,154,019.10
Total comprehensive income attributable to minority shareholders	7,984,293.02	12,810,741.89
Earnings per share
Basic earnings per share	0.06	-0.65
Diluted earnings per share	0.06	-0.65

CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2019
Expressed in Renminbi Yuan

		For The Year Ended of December 31
		2019	2018
1	CASH FLOWS FROM OPERATING ACTIVITIES
	Cash receipts from the sale of goods and the rendering of services	24,198,767,112.26	25,200,141,629.18
	Receipts of taxes and surcharges refunds	651,451,339.42	317,543,293.11
	Other cash receipts relating to operating activities	395,958,810.94	226,230,952.74
	Total cash inflows from operating activities	25,246,177,262.62	25,743,915,875.03
	Cash payments for goods and services	17,384,550,114.34	18,089,404,361.42
	Cash payments to and on behalf of employees	3,766,281,452.70	3,819,875,805.53
	Payments of all types of taxes and surcharges	252,464,256.86	441,552,824.15
	Other cash payments relating to operating activities	666,456,842.25	883,890,214.86
	Total cash outflows from operating activities	22,069,752,666.15	23,234,723,205.96
	Net cash flows from operating activities	3,176,424,596.47	2,509,192,669.07
2	CASH FLOWS FROM INVESTING ACTIVITIES
	Cash receipts from returns of investments	72,742,469.17	1,550,655,559.36
	Cash receipts from investment income	32,486,410.68	7,248,389.49
	Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	67,900,554.30	70,500,322.89
	Net cash receipts from disposal of subsidiaries and other business units	0.00	574,172,809.98
	Other cash receipts relating to investing activities	20,000,000.00	288,050,846.49
	Total cash inflows from investing activities	193,129,434.15	2,490,627,928.21
	Cash payments to acquire fixed assets, intangible assets and other long- term assets	2,803,587,529.88	4,311,127,824.46
	Cash payments for investments	0.00	1,714,569,354.51
	Net cash payments for acquisition of subsidiaries and other business units	0.00	20,788,047.49
	Total cash outflows from investing activities	2,803,587,529.88	6,046,485,226.46
	Net cash flows from investing activities	-2,610,458,095.73	-3,555,857,298.25

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED)
Year ended 31 December 2019
Expressed in Renminbi Yuan

		For The Year Ended of December 31
		2019	2018
3	CASH FLOWS FROM FINANCING ACTIVITIES
	Cash proceeds from investments by others	0.00	3,599,324,919.28
	Cash receipts from borrowings	14,280,102,227.20	10,144,543,666.76
	Other cash receipts relating to financing activities	2,117,868,426.98	0.00
	Total cash inflows from financing activities	16,397,970,654.18	13,743,868,586.04
	Cash repayments for debts	17,300,176,448.99	8,015,300,137.16
	Cash payments for distribution of dividends or profit and interest expenses	726,372,320.64	979,292,533.19
	Including: Dividends or profit paid to non-controlling shareholders of subsidiaries	0.00	6,683,000.00
	Other cash payments relating to financing activities	1,310,313,853.45	1,327,395,344.30
	Total cash outflows from financing activities	19,336,862,623.08	10,321,988,014.65
	Net cash flows from financing activities	-2,938,891,968.90	3,421,880,571.39
4	EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	32,131,026.17	91,498,868.57
5	NET INCREASE IN CASH AND CASH EQUIVALENTS	-2,340,794,441.99	2,466,714,810.78
	Add: Cash and cash equivalents at beginning of the year	4,206,347,524.52	1,739,632,713.74
6	CASH AND CASH EQUIVALENTS AT END OF THE YEAR	1,865,553,082.53	4,206,347,524.52