Q1 2021 financial highlights: - Revenue was RMB 6.71 billion. It was an increase of 17.6% year on year and a record high first quarter in the company's history. - Generated RMB 1.20 billion cash from operations, up 4.9% year on year. With net capex investments of RMB 0.56 billion, free cash flow for the quarter was RMB 0.64 billion. - Net profit was RMB 0.39 billion. A record high first quarter in the company's history with 188.7% year on year growth. - Earnings per share was RMB 0.24, as compared to RMB 0.08 in Q1 2020. JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first quarter of 2021 ended March 31, 2021. According to the financial report, in Q1 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 6.71 billion and net profit of RMB 0.39 billion, which achieved 17.6% and 188.7% year on year growth respectively In 2020, JCET played on its strengths of unparalleled industry insights and strategies, promoted development with innovation, and improved efficiency led by a world class management team. After nearly two years of resource optimization and integration, JCET's operations are now running in their optimum mode. With a concise development strategy and roadmap in place, as well as a team driven by passion to win, JCET has constructed a solid foundation for growth in 2021. Mr. Li Zheng, CEO of JCET said, "After reaching new highs in financial performance for 2020, including a net profit more than doubled of the previous 17 years' combined, JCET's earnings and revenue for the first quarter of 2021 again set new records year-over-year. Our continued excellence in R&D, manufacturing and strategic management is the key to our success and positions us well for even better results in 2021." Ms. Janet Chou, CFO of JCET said: "We achieved record quarterly revenue and profitability. Our gross margin expanded 2.9 percentage points year over year. Our debt leverage ratio decreased to below 2.0. We delivered RMB 0.64 billion free cash flow which demonstrated the strength of our business model. Our outstanding performance reflects solid execution of our growth strategy." Recently, with a strong recovery underway in the automotive market and an increased demand for deeper collaborative design within the industry supply chain, JCET announced the official opening of its Automotive Electronics Business Center and Design Services Business Center to further enhance the technology innovation advantage. The investment of resources into these two new business units demonstrates JCET's commitment to promoting collaborative and synergistic development across the IC industry and further strengthens its position for continued growth. For more information, please refer to JCET Q1FY2021 report. CONSOLIDATED BALANCE SHEET (Unaudited) RMB in millions As of ASSETS Mar 31, 2021 Dec 31, 2020 Current assets Currency funds 1,913 2,235 Trading financial assets 5 5 Derivative financial assets 0 8 Accounts receivable 3,458 3,846 Receivables financing 58 41 Prepayments 190 158 Other receivables 26 41 Inventories 2,650 2,946 Other current assets 83 149 Total current assets 8,383 9,429 Non-current assets Long-term receivables 40 42 Long-term equity investments 948 949 Other equity investments 432 430 Investment properties 95 96 Fixed assets 18,065 17,790 Construction in progress 689 866 Right-of-use assets 709 0 Intangible assets 477 526 Goodwill 2,086 2,071 Deferred tax assets 106 128 Other non-current assets 1 1 Total non-current assets 23,648 22,899 Total assets 32,031 32,328 CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited) RMB in millions As of LIABILITIES AND EQUITY Mar 31, 2021 Dec 31, 2020 Current liabilities Short-term borrowings 4,477 5,288 Derivative financial liabilities 7 0 Notes payable 449 513 Accounts payable 4,155 4,499 Contract liabilities 271 173 Employee benefits payable 664 858 Taxes and surcharges payable 135 109 Other payables 232 254 Current portion of long-term liabilities 2,474 2,131 Other current liabilities 315 21 Total current liabilities 13,179 13,846 Non-current liabilities Long-term borrowings 2,446 2,978 Bonds payable 999 999 Lease liabilities 597 0 Long-term payables 487 592 Long-term employee benefits payable 7 4 Deferred income 344 375 Deferred tax liabilities 129 124 Total non-current liabilities 5,009 5,072 Total liabilities 18,188 18,918 Equity Paid-in capital 1,603 1,603 Surplus reserves 10,242 10,242 Accumulated other comprehensive income (36) (83) Specialized reserves 120 120 Unappropriated profit 1,904 1,518 Total equity attributable to owners of the parent 13,833 13,400 Minority shareholders 10 10 Total equity 13,843 13,410 Total liabilities and equity 32,031 32,328 CONSOLIDATED INCOME STATEMENT (Unaudited) RMB in millions, except share data Three months ended Mar 31, 2021 Mar 31, 2020 Revenue 6,712 5,708 Less: Cost of sales 5,636 4,961 Taxes and surcharges 20 8 Selling expenses 49 57 Administrative expenses 230 209 Research and development expenses 258 215 Finance expenses 96 147 Including: Interest expenses 110 154 Interest income 5 9 Add: Other income 41 34 Investment income / (loss) (2) (1) Including: Income / (loss) from investments in associates and joint ventures (2) (1) Gain / (loss) on the net position hedging (2) (1) Credit impairment (loss is expressed by "-") 4 5 Asset impairment (loss is expressed by "-") (28) 3 Gain / (loss) on disposal of assets 6 4 Operating profit / (loss) 442 155 Less: Non-operating expenses 2 6 Profit / (loss) before income taxes 440 149 Less: Income tax expenses 53 15 Net profit / (loss) 387 134 Classified by continuity of operations Profit / (loss) from continuing operations 387 134 Classified by ownership Net profit / (loss) attributable to owners of the parent 386 134 Net profit / (loss) attributable to minority shareholders 1 0 Add: Unappropriated profit at beginning of period 1,518 231 Unappropriated profit at end of period (attributable to owners of the parent） 1,904 365 CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited) RMB in millions, except share data Three months ended Mar 31, 2021 Mar 31, 2020 Other comprehensive income, net of tax 47 131 Comprehensive income attributable to owners of the parent 47 131 Comprehensive income not be reclassified to profit or loss 1 0 Remeasurement gains or losses of a defined benefit plan 1 0 Comprehensive income to be reclassified to profit or loss 46 131 Cash flow hedge reserve (10) (2) Exchange differences of foreign currency financial statements 56 133 Total comprehensive income 434 265 Including: Total comprehensive income attributable to owners of the parent 433 265 Total comprehensive income attributable to minority shareholders 1 0 Earnings per share Basic earnings per share 0.24 0.08 Diluted earnings per share 0.24 0.08 CONSOLIDATED CASH FLOW STATEMENT (Unaudited) RMB in millions Three months ended Mar 31, 2021 Mar 31, 2020 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from the sale of goods and the rendering of services 7,439 6,035 Receipts of taxes and surcharges refunds 157 223 Other cash receipts relating to operating activities 51 293 Total cash inflows from operating activities 7,647 6,551 Cash payments for goods and services 5,073 4,225 Cash payments to and on behalf of employees 1,128 959 Payments of all types of taxes and surcharges 130 90 Other cash payments relating to operating activities 112 128 Total cash outflows from operating activities 6,443 5,402 Net cash flows from operating activities 1,204 1,149 CASH FLOWS FROM INVESTING ACTIVITIES Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets 36 7 Total cash inflows from investing activities 36 7 Cash payments to acquire fixed assets, intangible assets and other long-term assets 597 678 Total cash outflows from investing activities 597 678 Net cash flows from investing activities (561) (671) CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited) RMB in millions Three months ended Mar 31, 2021 Mar 31, 2020 CASH FLOWS FROM FINANCING ACTIVITIES Cash receipts from borrowings 1,623 5,931 Other cash receipts relating to financing activities 347 0 Total cash inflows from financing activities 1,970 5,931 Cash repayments for debts 2,662 5,748 Cash payments for distribution of dividends or profit and interest expenses 134 164 Other cash payments relating to financing activities 107 174 Total cash outflows from financing activities 2,903 6,086 Net cash flows from financing activities (933) (155) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 7 22 NET INCREASE IN CASH AND CASH EQUIVALENTS (283) 345 Add: Cash and cash equivalents at beginning of period 2,167 1,866 CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,884 2,211 SOURCE: JCET Group