JCET Performance Hits Another Record High in 1H 2022, Benefiting From Global Resource Optimization

Q2 2022 Financial Highlights：

 •  Revenue was RMB 7.46 billion, an increase of 4.9% year on year. A record high second quarter in the company’s history.
 •  Generated RMB 1.04 billion cash from operations. With net capex investments of RMB 0.64 billion, free cash flow for the quarter was RMB 0.4 billion.
 •  Net profit was RMB 0.68 billion.
 •  Earnings per share was RMB 0.39, as compared to RMB 0.54 in Q2 2021.

1H 2022 Financial Highlights：

 •  Revenue was RMB 15.59 billion, an increase of 12.8% year on year, a record high in the company’s history.
 •  Generated RMB 2.68 billion cash from operations. With net capex investments of RMB 1.51 billion, free cash flow for the first half of 2022 was RMB 1.17 billion.
 •  Net profit was RMB 1.54 billion, an increase of 16.7% year on year, a record high in the company's history.
 •  Earnings per share was RMB 0.87, as compared to RMB 0.78 in 1H 2021. 

Shanghai, China, August 18, 2022 - Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, announced its financial results for the first half year of 2022. The financial report shows that in the first half of 2022, JCET achieved revenue of RMB 15.59 billion, an increase of 12.8% year on year, and net profit of RMB 1.54 billion, with an overall solid and positive performance.

In 2022, the global IC market showed local fluctuations, and the demand growth for individual applications slowed down. In the face of these market dynamics, JCET upheld its professional and international management strategies, leveraged its rich technology insights and global resource optimization, and focused on technologies and processes such as advanced packaging and high value-added applications, ensuring steady business operations while maintaining a solid upward development trend.

At the same time, JCET overcame the adverse impact of the recurring local COVID-19 epidemic to ensure stable and orderly production while achieving a series of milestones in innovative technology development and manufacturing expansion.

JCET increased its investment in production and technology development in the field of high-performance packaging and achieved new levels of packaging capabilities for chipsets for smartphones. At the same time, revenue from the automotive electronics and computing electronics markets increased significantly compared to the same period last year, showing that the company is continuing to optimize its product portfolio while focusing on markets of high value-added applications. With the cultivation of differentiated competitiveness, the company is building new momentum for further development. JCET’s microelectronics wafer-level micro-system integration high-end manufacturing project officially started construction in July, which is an example of JCET’s steady advancement of its business strategy in advanced packaging technology and high-end manufacturing. This will greatly enhance JCET’s innovation and manufacturing capability to better meet the needs of global customers and to build up the future growth of the company.

Mr. Li Zheng, CEO of JCET said, "Due to the superimposed impact of the domestic epidemic and the fluctuation of the global economic situation, the overheated semiconductor IC market is likely to enter a downward cycle, especially the decline of the domestic cell phone market and consumer market. This will put certain pressure on the capacity efficiency of the company's domestic plants, and the orders from relevant markets are not optimistic. The company will continue to promote lean production and optimization of our product portfolio, and continue to actively invest in technology development and advanced production capacity in the field of high-performance packaging and testing to lay a solid foundation for future stable development."

For more information, please refer to the JCET 1H FY2022 Report.