JCET Group Unveils Impressive Annual Report for 2024 with Record Revenue Growth

JCET Group Unveils Impressive Annual Report for 2024

On April 20, 2025, JCET Group (SSE 600584), a leading name in the integrated circuit (IC) back-end manufacturing sector, revealed its annual financial results for 2024, showing remarkable growth across various metrics. The company posted a record-high revenue of RMB 35.96 billion for the year, marking a substantial increase of 21.2% compared to the previous year.

The fourth quarter alone saw JCET achieving revenue of RMB 10.98 billion, which represents a 19.0% increase year-on-year and a 15.7% increase from the prior quarter. This notable achievement signals the company's strong market performance, with the fourth quarter’s revenue crossing the RMB 10 billion mark for the first time in its history. Moreover, net profit attributable to owners of the parent company in Q4 was RMB 0.53 billion, reflecting a 7.3% increase year-on-year and an impressive 16.7% increase from the previous quarter.

Strengthening Cash Flow and Investment

For the 2024 fiscal year, JCET generated RMB 5.83 billion from its operations, leading to a free cash flow of RMB 1.26 billion after accounting for net capital expenditures of RMB 4.57 billion. The company's earnings per share for the year stood at RMB 0.9. JCET's commitment to bolstering its cash flow position has been consistent, with positive free cash flow recorded for six consecutive years.

In 2024, JCET made strategic enhancements to its core applications, fortifying customer loyalty and advancing the commercialization of innovative technologies. The organization significantly ramped up investments in advanced packaging technologies, which are essential to their transition towards high-end production. Despite facing short-term cost pressures, JCET remains optimistic that continuous technological innovation will fuel long-term growth.

Manufacturing Operations and Capacity

As of Q4 2024, JCET's manufacturing operations exhibited steady recovery and increasing capacity utilization. The company's wafer-level packaging, along with high-end testing operations, achieved full capacity, resulting in revenue from advanced packaging solutions accounting for more than 72% of total annual earnings. Furthermore, JCET has successfully developed a comprehensive range of customized packaging and testing solutions for high-performance computing systems, with revenue from this segment skyrocketing by 38.1% year-on-year.

In the automotive electronics market, demand for ADAS sensors and electrified drive systems facilitated a remarkable revenue growth of 20.5%, positioning JCET as a key player within the supply chains of major industry stakeholders.

Commitment to Technological Advancement

JCET's dedication to technological innovation was evidenced by an increase in research and development expenditures, which reached RMB 1.72 billion—up 19.3% year-on-year. The company filed 587 new patent applications in 2024, resulting in a total portfolio of 3,030 patents by year-end. Focusing on heterogeneous microsystem integration, JCET's advanced multi-dimensional fan-out packaging platform, XDFOI®, began mass production, significantly enhancing product performance.

The company also made strides in the new energy sector with the production of plastic-encapsulated power modules. These innovations address challenges such as heat dissipation and warpage in high-power applications, further solidifying JCET's competitive edge. Additionally, the introduction of HFBP dual-sided heat dissipation technology has improved customer loyalty and profit margins among prestigious global partners.

Major Projects and Future Outlook

Throughout 2024, JCET continued to invest heavily in capital expenditures to enhance its industrial capabilities. Notably, an 80% stake acquisition in SanDisk (Shanghai) was finalized, now incorporated into the financial results since Q4. The company also launched its high-end manufacturing facility for microelectronics in Jiangyin, which facilitates back-end services for performance-driven chips on a global scale. Another significant project is the Automotive Chip Back-End Manufacturing Base in Shanghai, expected to commence operations in the latter half of 2025, enhancing JCET's presence in the high-end automotive electronics space.

Mr. Li Zheng, CEO of JCET, expressed confidence in their strategy, stating, "By focusing on core applications and key markets, we have accelerated our transformation toward high value-added segments, achieving significant milestones in 2024. In response to ongoing shifts within the global semiconductor landscape, JCET will persist in enhancing technological innovation and fostering collaboration across the industry."

In summary, JCET Group's 2024 annual report demonstrates its resilience and forward momentum in the semiconductor industry, setting a robust foundation for future growth and innovation.