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Q4 2022 Financial Highlights:
- Revenue was RMB 8.98 billion, an increase of 4.6% year-on-year.
- Generated RMB 1.63 billion cash from operations. With net capex investments of RMB 1.24 billion, free cash flow for the quarter was RMB 0.39 billion.
- Net profit was RMB 0.78 billion.
- Earnings per share was RMB 0.44, as compared to RMB 0.49 in Q4 2021.
Full Year 2022 Financial Highlights:
- Revenue was RMB 33.76 billion, an increase of 10.7% year-on-year. A record high in the company's history.
- Generated RMB 6.01 billion cash from operations. With net capex investments of RMB 3.81 billion, free cash flow was RMB 2.20 billion.
- Net profit was RMB 3.23 billion, a record high in the company's history.
- Earnings per share was RMB 1.82, as compared to RMB 1.72 in 2021.
SHANGHAI, March 30, 2023 /PRNewswire/ -- JCET Group (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, 2022. According to the financial report, in 2022 JCET achieved revenue of RMB 33.76 billion, an increase of 10.7% year-on-year, and net profit attributable to owners of the parent of RMB 3.23 billion, an increase of 9.2% year-on-year.
In 2022, JCET's pioneering efforts in advanced packaging and testing technology and manufacturing continued to yield results. The company has honed its core technological capabilities through in-depth collaboration with global customers, forming a differentiating competitive advantage. The company's XDFOI™ high-density multi-dimensional heterogeneous integration chiplet technologies have entered the stage of high volume manufacturing (HVM). The company now provides multiple customers with HVM advanced packaging solutions for 4D millimeter-wave radar. During the reporting period, the profit and revenue contributed by high-performance, high-density system-level packaging technology and fan-out wafer-level packaging technology showed solid growth year-on-year. The revenue share of high-value-added products such as computing electronics and automotive electronics also continued to grow. Revenue from automotive electronics increased by 85% year-on-year in 2022, while computing electronics increased by 46% year-on-year. The company gained more test businesses in areas such as 5G RF, automotive chips, high-performance computing chips, and related business attributing to a revenue increase of 25% year-on-year. Over the past three years, the company has achieved positive free cash flow for 13 consecutive quarters through continuous improvement in profitability and asset structure, improvement in cash flow capacity, and a decrease in its asset-to-liability ratio.
Always being customer-centric, JCET has comprehensively and continuously improved its production and service quality and has been highly recognized by customers and other parties around the world. At the same time, the company continues to optimize its production capacity structure and actively meet customers' medium and long-term needs. The construction of the Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Project has steadily progressed. In order to further strengthen the product research and development capabilities in the field of cutting-edge technology, the company completed an increase of capital to RMB 1 billion for its wholly-owned subsidiary, JCET Management Co., Ltd. The construction of an Industry 4.0 intelligent new plant in the company's South Korea factory has been completed, and the Singapore factory has achieved a series of automated production and technological upgrades.
Mr. Li Zheng, CEO of JCET said, "In 2022, the company overcame adverse external factors such as shrinking demand in the end consumer market, and completed new technology developments in the fields of automotive electronics, high-performance computing, and other fields as well as the HVM of new products from several world-renowned customers, laying a solid foundation for the company's high-quality development in the future. Since the fourth quarter of 2022, the downward pressure on consumer markets such as mobile phones has remained significant, and the global IC industry is still in a typical downward cycle. JCET is actively utilizing its flexible global layout and the adjustment period in which revenue and profit margins are under short-term pressure to accelerate the active transformation of back-end chip manufacturing processes to high performance, as well as the automation and intelligent upgrade of production lines, to provide sufficient preparation for the global market recovery in the near future, and a new round of application demand growth."
For more information, please refer to the JCET FY2022 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 industrial, through advanced wafer-level packaging, 2.5D/3D, System-in-Package, 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 our global customers.
CONSOLIDATED BALANCE SHEET (Audited) | RMB in millions | ||||||||
Dec 31, 2022 | Dec 31, 2021 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Currency funds | 2,459 | 2,761 | |||||||
Trading financial assets | 4,316 | 2,670 | |||||||
Derivative financial assets | 18 | 5 | |||||||
Accounts receivable | 3,689 | 4,271 | |||||||
Receivables financing | 59 | 28 | |||||||
Prepayments | 110 | 183 | |||||||
Other receivables | 61 | 77 | |||||||
Inventories | 3,152 | 3,193 | |||||||
Assets classified as held for sale | 0 | 99 | |||||||
Other current assets | 279 | 130 | |||||||
Total current assets | 14,143 | 13,417 | |||||||
Non-current assets | |||||||||
Long-term receivables | 40 | 38 | |||||||
Long-term equity investments | 765 | 770 | |||||||
Other equity investments | 440 | 418 | |||||||
Investment properties | 89 | 93 | |||||||
Fixed assets | 19,517 | 18,424 | |||||||
Construction in progress | 807 | 661 | |||||||
Right-of-use assets | 578 | 622 | |||||||
Intangible assets | 483 | 447 | |||||||
Goodwill | 2,210 | 2,023 | |||||||
Long-term prepaid expenses | 28 | ||||||||
Deferred tax assets | 247 | 185 | |||||||
Other non-current assets | 61 | 1 | |||||||
Total non-current assets | 25,265 | 23,682 | |||||||
Total assets | 39,408 | 37,099 | |||||||
LIABILITIES AND EQUITY | Dec 31, 2022 | Dec 31, 2021 | |||||||
Current liabilities | |||||||||
Short-term borrowings | 1,174 | 2,193 | |||||||
Derivative financial liabilities | 0 | 2 | |||||||
Notes payable | 339 | 579 | |||||||
Accounts payable | 4,634 | 5,298 | |||||||
Contract liabilities | 214 | 458 | |||||||
Employee benefits payable | 984 | 1,062 | |||||||
Taxes and surcharges payable | 210 | 235 | |||||||
Other payables | 378 | 414 | |||||||
Liabilities classified as held for sale | 0 | 45 | |||||||
Current portion of long-term liabilities | 3,096 | 1,052 | |||||||
Other current liabilities | 4 | 3 | |||||||
Total current liabilities | 11,033 | 11,341 | |||||||
Non-current liabilities | |||||||||
Long-term borrowings | 2,721 | 3,751 | |||||||
Lease liabilities | 562 | 568 | |||||||
Long-term employee benefits payable | 14 | 20 | |||||||
Deferred income | 340 | 337 | |||||||
Deferred tax liabilities | 40 | 82 | |||||||
Other non-current liabilities | 55 | 0 | |||||||
Total non-current liabilities | 3,732 | 4,758 | |||||||
Total liabilities | 14,765 | 16,099 | |||||||
Equity | |||||||||
Paid-in capital | 1,780 | 1,780 | |||||||
Capital reserves | 15,080 | 14,984 | |||||||
Accumulated other comprehensive income | 400 | (281) | |||||||
Surplus reserves | 229 | 174 | |||||||
Unappropriated profit | 7,154 | 4,334 | |||||||
Total equity attributable to owners of the parent | 24,643 | 20,991 | |||||||
Minority shareholders | 0 | 9 | |||||||
Total equity | 24,643 | 21,000 | |||||||
Total liabilities and equity | 39,408 | 37,099 |
CONSOLIDATED INCOME STATEMENT (Audited) | RMB in millions, except share data | ||||||||
Three months ended | Year ended | ||||||||
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | ||||||
Revenue | 8,984 | 8,585 | 33,762 | 30,502 | |||||
Less: Cost of sales | 7,688 | 6,882 | 28,010 | 24,887 | |||||
Taxes and surcharges | 20 | 19 | 90 | 77 | |||||
Selling expenses | 42 | 49 | 184 | 194 | |||||
Administrative expenses | 95 | 299 | 900 | 1,042 | |||||
Research and development expenses | 333 | 326 | 1,313 | 1,186 | |||||
Finance expenses | 137 | 29 | 126 | 206 | |||||
Including: Interest expenses | 64 | 43 | 207 | 313 | |||||
Interest income | 10 | 4 | 31 | 37 | |||||
Add: Other income | 53 | 35 | 191 | 170 | |||||
Investment income / (loss) | 63 | 16 | 128 | 315 | |||||
Including: Income / (loss) from investments in associates and joint ventures | 1 | (291) | (5) | (6) | |||||
Gain / (loss) on the net position hedging | 0 | 11 | 0 | 0 | |||||
Gain / (loss) on changes in fair value of financial assets/liabilities | 3 | (12) | (37) | (12) | |||||
Credit impairment (loss is expressed by "-") | 17 | 9 | 34 | 23 | |||||
Asset impairment (loss is expressed by "-") | (131) | (216) | (257) | (268) | |||||
Gain / (loss) on disposal of assets | 6 | 2 | 48 | 32 | |||||
Operating profit / (loss) | 680 | 826 | 3,246 | 3,170 | |||||
Add: Non-operating income | 2 | 12 | 47 | 18 | |||||
Less: Non-operating expenses | 1 | 7 | 2 | 18 | |||||
Profit / (loss) before income taxes | 681 | 831 | 3,291 | 3,170 | |||||
Less: Income tax expenses | (98) | (13) | 60 | 210 | |||||
Net profit / (loss) | 779 | 844 | 3,231 | 2,960 | |||||
Classified by continuity of operations | |||||||||
Profit / (loss) from continuing operations | 779 | 844 | 3,231 | 2,960 | |||||
Classified by ownership | 0 | ||||||||
Net profit / (loss) attributable to owners of the parent | 779 | 843 | 3,231 | 2,958 | |||||
Net profit / (loss) attributable to minority shareholders | 0 | 1 | 0 | 2 | |||||
Add: Unappropriated profit at beginning of period | 6,430 | 3,544 | 4,334 | 1,518 | |||||
Less: Extract statutory surplus accumulation | 55 | 53 | 55 | 53 | |||||
Cash dividends payable | 0 | 0 | 356 | 89 | |||||
Unappropriated profit at end of period (attributable to owners of the parent） | 7,154 | 4,334 | 7,154 | 4,334 | |||||
Other comprehensive income, net of tax | (151) | (120) | 680 | (197) | |||||
Comprehensive income attributable to owners of the parent | (151) | (120) | 680 | (197) | |||||
Comprehensive income not be reclassified to profit or loss | 7 | (14) | (7) | (13) | |||||
Remeasurement gains or losses of a defined benefit plan | 1 | (2) | 1 | (1) | |||||
Change in the fair value of other equity investments | 6 | (12) | (8) | (12) | |||||
Comprehensive income to be reclassified to profit or loss | (158) | (106) | 687 | (184) | |||||
Comprehensive income using the equity method that may be reclassified to profit or loss | 0 | 0 | 0 | (21) | |||||
Cash flow hedge reserve | 23 | 10 | (4) | 2 | |||||
Exchange differences of foreign currency financial statements | (181) | (116) | 691 | (165) | |||||
Total comprehensive income | 628 | 724 | 3,911 | 2,763 | |||||
Including: | |||||||||
Total comprehensive income attributable to owners of the parent | 628 | 723 | 3,911 | 2,761 | |||||
Total comprehensive income attributable to minority shareholders | 0 | 1 | 0 | 2 | |||||
Earnings per share | |||||||||
Basic earnings per share | 0.44 | 0.49 | 1.82 | 1.72 | |||||
Diluted earnings per share | 0.43 | 0.49 | 1.81 | 1.72 |
CONSOLIDATED CASH FLOW STATEMENT (Audited) | RMB in millions | ||||||||
Three months ended | Year ended | ||||||||
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2021 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Cash receipts from the sale of goods and the rendering of services | 11,033 | 9,611 | 36,233 | 32,445 | |||||
Receipts of taxes and surcharges refunds | 34 | 49 | 307 | 389 | |||||
Other cash receipts relating to operating activities | 103 | 30 | 321 | 237 | |||||
Total cash inflows from operating activities | 11,170 | 9,690 | 36,861 | 33,071 | |||||
Cash payments for goods and services | 8,458 | 6,031 | 25,604 | 20,445 | |||||
Cash payments to and on behalf of employees | 1,019 | 937 | 4,275 | 4,265 | |||||
Payments of all types of taxes and surcharges | (152) | 19 | 543 | 608 | |||||
Other cash payments relating to operating activities | 213 | 68 | 427 | 324 | |||||
Total cash outflows from operating activities | 9,538 | 7,055 | 30,849 | 25,642 | |||||
Net cash flows from operating activities | 1,632 | 2,635 | 6,012 | 7,429 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Cash receipts from returns of investments | 4,151 | 3,281 | 12,701 | 6,133 | |||||
Cash receipts from investment income | 33 | 20 | 89 | 33 | |||||
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | (3) | 10 | 107 | 271 | |||||
Net cash receipts from disposal of subsidiaries and other business units | 0 | 0 | 30 | 0 | |||||
Other cash receipts relating to investing activities | 0 | 10 | 0 | 10 | |||||
Total cash inflows from investing activities | 4,181 | 3,321 | 12,927 | 6,447 | |||||
Cash payments to acquire fixed assets, intangible assets and other long-term assets | 1,236 | 1,345 | 3,924 | 4,358 | |||||
Cash payments for investments | 4,300 | 4,029 | 14,361 | 8,405 | |||||
Total cash outflows from investing activities | 5,536 | 5,374 | 18,285 | 12,763 | |||||
Net cash flows from investing activities | (1,355) | (2,053) | (5,358) | (6,316) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Cash proceeds from investments by others | 0 | 0 | 0 | 4,965 | |||||
Cash receipts from borrowings | 2,255 | 2,524 | 5,216 | 7,153 | |||||
Other cash receipts relating to financing activities | 0 | (347) | 0 | 0 | |||||
Total cash inflows from financing activities | 2,255 | 2,177 | 5,216 | 12,118 | |||||
Cash repayments for debts | 2,523 | 3,099 | 5,053 | 11,613 | |||||
Cash payments for distribution of dividends or profit and interest expenses | 29 | 26 | 524 | 392 | |||||
Including: Dividends or profit paid to non-controlling shareholders of subsidiaries | 0 | 3 | 0 | 3 | |||||
Other cash payments relating to financing activities | (71) | (166) | 687 | 605 | |||||
Total cash outflows from financing activities | 2,481 | 2,959 | 6,264 | 12,610 | |||||
Net cash flows from financing activities | (226) | (782) | (1,048) | (492) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (10) | (17) | 84 | (25) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 41 | (217) | (310) | 596 | |||||
Add: Cash and cash equivalents at beginning of period | 2,412 | 2,980 | 2,763 | 2,167 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,453 | 2,763 | 2,453 | 2,763 |
Source: JCET Group Related Stocks: Shanghai:600584
