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.

October 30, 2020, Shanghai, China- 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."