JCET Innovation and Manufacturing Strategies Deliver Record High Revenue for FY2020 with Profits Twice the Total of the Last 17 Years

By PRNEWSWIRE

Published : April 28, 2021 - 23:21

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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.

SHANGHAI, April 28, 2021 /PRNewswire/ -- 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.

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