Q1 2023 Financial Summary:

Revenue was RMB 5.86 billion.
Generated RMB 1.23 billion cash from operations. With net capex investments of 
RMB 0.81 billion, free cash flow for the quarter was RMB 0.42 billion.
Net profit was RMB 0.11 billion. Earnings per share was RMB 0.06.

JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) 
manufacturing and technology services, today announced its financial results 
for the first quarter of 2023. According to the financial report, in Q1 2023 
JCET achieved revenue of RMB 5.86 billion, and net profit of RMB 0.11 billion.

Consumer electronics demand has been weak causing chip companies to accumulate 
high inventory levels and face increasing market pressure. In order to actively 
and effectively respond to market changes, JCET continuously invests in 
high-performance, advanced packaging technology, and in fields with 
continuously growing demand such as automotive electronics, industrial 
electronics, and high-performance computing, to prepare for a new round of 
application demand growth.

In recent years, JCET focused on technology development and has achieved HVM of 
advanced packaging technologies such as system level (SiP), wafer level, and 
2.5D/3D. In Q1 2023, the proportion of advanced packaging revenue in the 
company's revenue continuously exceeded 60%, becoming the "ballast stone" for 
the company's development. JCET invested RMB 1.31 billion in R&D in 2022, a 
year-on-year increase of 10.7%; in the first quarter of this year, R&D 
investment was RMB 0.31 billion, accounting for 5.3% of revenue. JCET has made 
breakthroughs in the field of chiplet technology, achieving ultra-large 
high-density fan-out flip chip heterogeneous integration of multiple chips in 
packages as large as 102mm x 102mm. It is also supported with a complete set of 
turnkey services from design to production, providing excellent microsystem 
integration solutions for high-performance computing applications.

In the field of automotive electronics, the company accelerates the R&D of 
advanced packaging technologies related to electric vehicles and autonomous 
driving with high-reliability standards, as well as the development of 
next-generation power device modules and other products, enhancing the 
differentiated competitiveness of advanced technologies and services and 
implementing them at their factories. In Q1 2023, the revenue of automotive 
electronics continued to grow with a year-on-year increase of 144%.

In 2023, JCET will maintain a reasonable level of growth in total capital 
expenditure, expanding production capacity to meet customer needs, while 
actively expanding the company's investment in R&D, infrastructure, 
technological innovation, and factory automation upgrades.

Mr. Li Zheng, CEO of JCET said, "The combination of several factors has 
resulted in a sustained downturn in the semiconductor market. Although the 
short-term performance is under pressure, JCET will continuously adhere to the 
strategy of promoting international and domestic business, increase investment 
in cutting-edge technology and resources, and focus on higher-level packaging 
technologies such as automotive electronic chips and diversified solutions for 
chiplet. The company will carry out forward-looking infrastructure, R&D, and 
strategic production capacity expansion, accelerate the product development and 
market promotion mechanisms centered on intelligent solutions, explore market 
demand with greater potential for future development, and provide high-quality 
production technology services to global customers."

For more information, please refer to the JCET Q1 2023 Report. 
(https://www.jcetglobal.com/uploads/JCET%20Finance%20Report%202023Q1.pdf)

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.

SOURCE: JCET Group

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