JCET's Global Manufacturing Strategy Produces Records for Revenue and Profit in Q3
Q3 2020 Financial Highlights:
- Revenue was RMB 6.79 billion. On a comparable basis, taking into account the accounting change in revenue recognition, it was an increase of 11.2% year on year (see note).
- Generated RMB 1.48 billion cash from operations, up 171.3% year on year. With net capex investments of RMB 0.69 billion, free cash flow for the quarter was RMB 0.79 billion.
- Net profit was RMB 0.40 billion, a record high in the company's history.
- Earnings per share was RMB 0.25, as compared to RMB 0.05 in Q3 2019.
Note: 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 1.05 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 7.84 billion, an increase of 11.2% over the same period last year.
SHANGHAI, Oct. 30, 2020 /PRNewswire/ -- JCET Group Co., Ltd. (Shanghai Stock Exchange code: 600584), a world leading provider of semiconductor microsystem integration packaging and testing services announced financial results for the third quarter 2020, ended September 30, 2020. Revenue was RMB 6.79 billion and net profit was RMB 0.40 billion, showing steady revenue growth and continued improvement in profitability. JCET has achieved revenue of RMB 18.76 billion and net profit of RMB 0.76 billion through the first three quarters, both representing record highs for the company.
JCET has continued to grow its strategic partnerships with global industry leading semiconductor manufacturers by accelerating the growth of high volume production capacity of advanced assembly and test processes and engaging in robust market strategies. These initiatives have led to improvements in key financial metrics.
Mr. Li Zheng, Chief Executive Officer of JCET Group, said, "By expanding the integration of the resources in each of our worldwide operations, we have accelerated the growth of our production capacity for devices designed for key applications in the 5G, high-performance computing and high-end storage markets. Additionally, the technical services capabilities of each of our global factories have been enhanced significantly due to the continued improvements driven by our company's world-class management team."
Ms. Janet Chou, Chief Financial Officer of JCET Group, said, "With strong execution and operational discipline, JCET delivered record profit in the third quarter of 2020. We remain committed to driving profitable growth and cash generation. Given the improved liquidity position and healthier balance sheet, we will continue to invest in critical technologies to strengthen our core competencies."
About JCET Group:
JCET Group is a leading global semiconductor system 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 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 customers in China and around the world.