Q2 2024 Financial Highlights：

Revenue was RMB 8.64 billion,an increase of 36.9% year-on-year and 26.3% quarter-on-quarter. A record high Q2 in the company's history.

Generated RMB 1.65 billion cash from operations. With net capex investments of RMB 0.93 billion,free cash flow for the quarter was RMB 0.72 billion.

Net profit attributable to owners of the parent was RMB 0.48 billion,an increase of 25.5% year-on-year and 258.0% quarter-on-quarter.

Earnings per share was RMB 0.27,as compared to RMB 0.22 in Q2 2023.

1H 2024 Financial Highlights：

Revenue was RMB 15.49 billion,an increase of 27.2% year-on-year.

Generated RMB 3.03 billion cash from operations. With net capex investments of RMB 1.87 billion,free cash flow for the first half of 2024 was RMB 1.16 billion.

Net profit attributable to owners of the parent was RMB 0.62 billion,an increase of 25.0% year-on-year.

Earnings per share was RMB 0.35,as compared to RMB 0.28 in 1H 2023.

SHANGHAI,Aug. 23,2024 -- Today,JCET Group (SSE: 600584),a leading global provider of integrated circuit (IC) back-end manufacturing and technology services,announced its financial results for the first half year of 2024. The financial report shows that in the first half of 2024,JCET achieved revenue of RMB 15.49billion,and net profit attributable to owners of the parent of RMB 0.62billion,both increased over 25%. In Q2 2024 JCET achieved revenue of RMB 8.64billion,an increase of 36.9% year-on-year,a record high Q2 in the company's history,and net profit attributable to owners of the parent of RMB 0.48billion,an increase of 25.5% year-on-year and 258.0% quarter-on-quarter,generating RMB 1.65 billion cash from operations.

During the reporting period,the company's capacity utilization has significantly increased,with enlarged investment to expand production capacity of core production lines. In the first half of the year,the revenue of communications,computing,and consumer electronics businesses increased respectively by 48%,23%,and 33% year-on-year. The company is consistently strengthening the research and development in advanced packaging technologies,with R&D investment of RMB 0.82 billion in 1H 2024,a year-on-year increase of 22.4%.

JCET is also actively promoting strategic projects to enhance its smart manufacturing. After two years construction,the new advanced packaging factory "JCET Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Base" with an area of over 130,000 square meters is progressing with equipment mobilization. The new automotive chip back-end manufacturing base has completed building the factory structure. The acquisition of a high-density memory chip packaging factory has obtained necessary approvals,and the project is progressing towards completion.

Mr. Li Zheng,CEO of JCET,said,"JCET actively promotes innovative applications of advanced packaging technologies and continues to expand its production capacity in China,Singapore and South Korea,with steady growth in performance in the first half of 2024. The company will continue to increase investment in R&D and strategic projects,strengthen innovation cooperation in the industrial chain and sustainable development,and create higher value for shareholders,customers,employees and society."

For more information,please refer to the JCET 1H FY2024 Report.

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,eight 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.

CONSOLIDATED BALANCE SHEET (Unaudited)

RMB in millions

Jun 30,2024

Dec 31,2023

ASSETS

Current assets

Currency funds

10,621

7,325

Trading financial assets

1,605

2,306

Derivative financial assets

4

Accounts receivable

4,066

4,185

Receivables financing

71

38

Prepayments

132

104

Other receivables

115

87

Inventories

3,408

3,195

Other current assets

393

375

Total current assets

20,411

17,619

Non-current assets

Long-term receivables

31

33

Long-term equity investments

666

695

Other equity investments

434

447

Investment properties

84

86

Fixed assets

18,408

18,744

Construction in progress

2,039

1,053

Right-of-use assets

519

563

Intangible assets

659

662

Goodwill

2,262

2,248

Long-term prepaid expenses

13

17

Deferred tax assets

377

364

Other non-current assets

66

48

Total non-current assets

25,558

24,960

Total assets

45,969

42,579

LIABILITIES AND EQUITY

Jun 30,2023

Current liabilities

Short-term borrowings

467

1,696

Derivative financial liabilities

2

Notes payable

300

223

Accounts payable

5,773

4,782

Contract liabilities

260

185

Employee benefits payable

732

781

Taxes and surcharges payable

116

167

Other payables

368

354

Current portion of long-term liabilities

1,806

1,491

Other current liabilities

2

3

Total current liabilities

9,826

9,682

Non-current liabilities

Long-term borrowings

7,749

5,777

Lease liabilities

480

530

Long-term payables

3

Long-term employee benefits payable

14

14

Deferred income

438

384

Other non-current liabilities

38

41

Total non-current liabilities

8,722

6,746

Total liabilities

18,548

16,428

Equity

Paid-in capital

1,789

1,789

Capital reserves

15,228

15,237

Accumulated other comprehensive income

591

543

Specialized reserves

1

Surplus reserves

257

257

Unappropriated profit

8,680

8,239

Total equity attributable to owners of the parent

26,546

26,065

Minority shareholders

875

86

Total equity

27,421

26,151

Total liabilities and equity

45,579

CONSOLIDATED INCOME STATEMENT (Unaudited)

RMB in millions,except share data

Three months ended

Six months ended

Jun 30,2024

Jun 30,2023

Jun 30,2023

Revenue

8,645

6,313

15,487

12,173

Less: Cost of sales

7,410

5,359

13,417

10,525

Taxes and surcharges

22

27

35

47

Selling expenses

64

51

118

100

Administrative expenses

209

175

433

347

Research and development expenses

438

360

819

669

Finance expenses

(19)

(7)

(11)

51

Including: Interest expenses

99

68

192

131

Interest income

80

27

141

35

Add: Other income

47

40

86

73

Investment income / (loss)

(4)

(24)

(14)

(21)

Including: Income / (loss) from investments in associates and joint ventures

(12)

(10)

(29)

(21)

Gain / (loss) on changes in fair value of financial assets/liabilities

37

(5)

46

Credit impairment (loss is expressed by "-")

(14)

(6)

(7)

(1)

Asset impairment (loss is expressed by "-")

(20)

(5)

(38)

Gain / (loss) on disposal of assets

2

13

5

16

Operating profit / (loss)

532

403

703

547

Add: Non-operating income

2

1

3

Less: Non-operating expenses

2

2

4

Profit / (loss) before income taxes

530

405

702

546

Less: Income tax expenses

47

19

85

50

Net profit / (loss)

483

386

617

496

Classified by continuity of operations

Profit / (loss) from continuing operations

483

386

617

496

Classified by ownership

Net profit / (loss) attributable to owners of the parent

484

386

619

496

Net profit / (loss) attributable to minority shareholders

(1)

(2)

Add: Unappropriated profit at beginning of period

8,374

7,264

8,239

7,154

Less: Cash dividends declared

178

358

178

358

Unappropriated profit at end of period (attributable to owners of the parent）

8,680

7,292

8,292

Other comprehensive income,net of tax

36

481

48

350

Comprehensive income attributable to owners of the parent

36

481

48

350

Comprehensive income not be reclassified to profit or loss

(8)

6

(13)

17

Remeasurement gains or losses of a defined benefit plan

1

Change in the fair value of other equity investments

(8)

6

(13)

16

Comprehensive income to be reclassified to profit or loss

44

475

61

333

Exchange differences of foreign currency financial statements

44

475

61

333

Total comprehensive income

519

867

665

846

Including:

Total comprehensive income attributable to owners of the parent

520

867

667

846

Total comprehensive income attributable to minority shareholders

(1)

(2)

Earnings per share

Basic earnings per share

0.27

0.22

0.35

0.28

Diluted earnings per share

0.27

0.22

0.35

0.28

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)

RMB in millions

Three months ended

Six months ended

Jun 30,2023

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from the sale of goods and the rendering of services

8,784

6,178

16,590

13,162

Receipts of taxes and surcharges refunds

81

122

198

216

Other cash receipts relating to operating activities

181

110

283

163

Total cash inflows from operating activities

9,046

6,410

17,071

13,541

Cash payments for goods and services

6,078

4,069

11,254

8,454

Cash payments to and on behalf of employees

1,056

878

2,248

2,072

Payments of all types of taxes and surcharges

197

254

289

466

Other cash payments relating to operating activities

61

22

253

128

Total cash outflows from operating activities

7,392

5,223

14,044

11,120

Net cash flows from operating activities

1,654

1,187

3,027

2,421

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments

4,800

4,350

9,050

8,280

Cash receipts from investment income

2

38

15

52

Net cash receipts from disposal of fixed assets,intangible assets and other long-term assets

2

7

5

32

Total cash inflows from investing activities

4,804

4,395

9,070

8,364

Cash payments to acquire fixed assets,intangible assets and other long-term assets

937

749

1,870

1,588

Cash payments for investments

4,650

3,200

8,350

5,980

Total cash outflows from investing activities

5,587

3,949

10,220

7,568

Net cash flows from investing activities

(783)

446

(1,150)

796

CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from investments by others

6

230

776

230

Including: Cash receipts from capital contributions from minority shareholders of subsidiaries

86

765

86

Cash receipts from borrowings

728

1,317

3,007

1,664

Total cash inflows from financing activities

734

1,547

3,783

1,894

Cash repayments for debts

657

755

1,963

1,740

Cash payments for distribution of dividends or profit and interest expenses

272

414

352

467

Other cash payments relating to financing activities

34

16

53

48

Total cash outflows from financing activities

963

1,185

2,368

2,255

Net cash flows from financing activities

(229)

362

1,415

(361)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

2

45

4

37

NET INCREASE IN CASH AND CASH EQUIVALENTS

644

2,040

3,296

2,893

Add: Cash and cash equivalents at beginning of period

9,977

3,306

7,325

2,453

CASH AND CASH EQUIVALENTS AT END OF PERIOD

10,621

5,346

10,346