JCET H1 Revenue Up 5% YoY, Net Profit Attributable to Parent Company Up 79.4%, Plans Cash Dividend of 0.5 Yuan per 10 Shares | Financial Report Insights

The summary of JCET's 2026 semi-annual report shows that in the first half of the year, the company achieved operating revenue of 19.527 billion yuan, a year-on-year increase of 4.96%; net profit attributable to the parent company was 845 million yuan, a year-on-year increase of 79.41%; and net profit attributable to the parent company after deducting non-recurring items was 808 million yuan, a year-on-year increase of 84.73%. Against the backdrop of only single-digit revenue growth, the significant recovery in profitability is the core highlight of this financial report.

The company attributed its performance growth to the rapid increase in demand for AI-related infrastructure and edge devices, the clear trend of domestic semiconductor substitution, and the continuous improvement in the global semiconductor industry cycle. During the reporting period, the company stated that customer orders continued to grow, and capacity utilization remained at a high level.

Improvement in profitability was also evident. In the first half, JCET's net profit margin attributable to the parent company was approximately 4.33%, an increase of about 1.8 percentage points from approximately 2.53% in the same period last year; the net profit margin attributable to the parent company after deducting non-recurring items was approximately 4.14%, also showing a significant year-on-year increase. The company stated that the increase in high-value-added products, optimization of product structure and business portfolio, as well as cost reduction and efficiency enhancement, supported the profit side.

Regarding cash flow, the net cash flow from operating activities was 2.964 billion yuan, a year-on-year increase of 26.75%, significantly higher than the net profit attributable to the parent company for the same period. Meanwhile, the company plans to distribute a cash dividend of 0.5 yuan for every 10 shares, totaling 89.4707 million yuan; and announced a planned investment of 7.8 billion yuan to build a high-end advanced packaging and testing factory at the Wanxiang Industrial Park in the "Oriental Chip Port" in Lingang, Shanghai.

Revenue Side: Industry Recovery, but Growth Remains Moderate

JCET's operating revenue in the first half was 19.527 billion yuan, an increase of approximately 922 million yuan from 18.605 billion yuan in the same period last year, representing a year-on-year growth of 4.96%.

According to the reasons disclosed by the company, the improvement in demand mainly stems from three lines: first, the demand for related chips driven by AI infrastructure construction; second, the expansion of terminal applications such as edge AI; and third, the growth in orders for the local packaging and testing supply chain driven by the trend of domestic semiconductor substitution.

However, from a financial perspective, the revenue growth remains a moderate recovery without explosive growth. In other words, this semi-annual report highlights "profit elasticity" rather than "revenue elasticity": the improvement in company orders and capacity utilization is more reflected in the recovery of profit margins and the enhancement of operational efficiency.

Profit Side: Net Profit Growth Significantly Outpaces Revenue, Core Contributions Are More Solid

During the reporting period, JCET's total profit was 894 million yuan, a year-on-year increase of 56.06%; net profit attributable to the parent company was 845 million yuan, a year-on-year increase of 79.41%; and net profit attributable to the parent company after deducting non-recurring items was 808 million yuan, a year-on-year increase of 84.73%.

Notably, the net profit attributable to the parent company after deducting non-recurring items accounted for approximately 95.7% of the net profit attributable to the parent company, indicating that the company's profit growth in the first half was mainly driven by improvements in core operations rather than one-time non-recurring gains.

From the perspective of profit margins, JCET's net profit margin attributable to the parent company in the first half was approximately 4.33%, a year-on-year increase of about 1.8 percentage points; the net profit margin attributable to the parent company after deducting non-recurring items was approximately 4.14%, a year-on-year increase of about 1.79 percentage points. For packaging and testing companies, an increase in capacity utilization usually brings certain operating leverage, and coupled with the optimization of product structure, the improvement in profits is often greater than that in revenue.

The company explicitly mentioned in the financial report that it continues to optimize its product structure and business portfolio, increases high-value-added products, and further enhances profitability. At the same time, the company promoted cost reduction and efficiency enhancement, strengthened cost and expense control, partially offsetting the impact of factors such as rising raw material prices.

Earnings Per Share and ROE Improve Simultaneously

In the first half, JCET's basic earnings per share and diluted earnings per share were both 0.47 yuan, compared to 0.26 yuan in the same period last year, a year-on-year increase of 80.77%.

The weighted average return on equity (ROE) was 2.92%, an increase of 1.23 percentage points from 1.69% in the same period last year. Although the absolute level of ROE on a semi-annual basis is not high, the year-on-year improvement is relatively significant, reflecting a recovery in profitability efficiency against the backdrop of asset and net asset expansion.

As of the end of the reporting period, the company's total assets were 58.643 billion yuan, an increase of 5.63% from the end of the previous year; net assets attributable to the parent company were 28.945 billion yuan, an increase of 0.95% from the end of the previous year. The faster expansion of assets compared to net assets is also related to the company's capital expenditures, debt financing, and subsequent production expansion plans.

Cash Flow: Operating Cash Flow of 2.964 Billion Yuan, Stronger Cash Content Than Profit

JCET's net cash flow from operating activities in the first half was 2.964 billion yuan, a year-on-year increase of 26.75%, an increase of approximately 626 million yuan compared to the same period last year.

This amount is approximately 3.5 times the net profit attributable to the parent company for the same period, indicating that the company's operating cash flow performance is significantly stronger than its book profit. For capital-intensive industries like packaging and testing with large equipment investments, the improvement in operating cash flow is particularly crucial: it not only supports daily operations but also provides a financial buffer for the construction of subsequent advanced packaging and testing capacity.

During the same period, the company's total assets increased by approximately 3.126 billion yuan from the end of the previous year. With the advancement of the 7.8 billion yuan high-end advanced packaging project, the company will still face significant pressure in capital investment, depreciation and amortization, and capacity ramp-up in the future. The sustainability of cash flow will become an important indicator for observing the quality of the financial report.

7.8 Billion Yuan Lingang Project: Betting on High-End Advanced Packaging Capacity

The most important strategic move during the reporting period was JCET's plan to invest in building a high-end advanced packaging and testing factory at the Wanxiang Industrial Park in the "Oriental Chip Port" in Lingang, Shanghai, with a total project investment of 7.8 billion yuan.

Calculated based on end-of-period assets, the 7.8 billion yuan investment is equivalent to approximately 13.3% of the company's total assets and approximately 26.9% of the net assets attributable to the parent company, which is a significant scale. If the project proceeds smoothly, it will further strengthen the company's capacity layout in the high-end advanced packaging field and help meet the demand for AI, domestic substitution, and high-value-added products.

The company's announcement showed that the Board of Directors approved the relevant external investment proposal on June 24. As of the disclosure date of the semi-annual report, the company had completed the establishment and industrial and commercial registration procedures of its wholly-owned subsidiary in advance according to the project progress and board authorization, and obtained the business license.

From a financial perspective, it is important to note that advanced packaging production lines usually involve high equipment investment and customer verification cycles. The subsequent impact of the project on the income statement will depend on the construction pace, equipment introduction, matching of customer orders, capacity utilization, and the pace of releasing depreciation pressure.

Dividend: Plans 0.5 Yuan per 10 Shares, Payout Ratio Approximately 10%

JCET plans to distribute a cash dividend of 0.5 yuan for every 10 shares held by all shareholders, based on a total share capital of 1.789 billion shares, totaling 89.4707 million yuan in cash dividends.

Based on the company's net profit attributable to the parent company of 845 million yuan in the first half, the proposed dividend amount accounts for approximately 10.6% of the net profit attributable to the parent company for the first half. The company also clarified that it will not convert capital reserves into share capital or issue bonus shares for the 2026 semi-annual period.

If the company's total share capital changes before the record date for equity distribution, the company plans to maintain the unchanged per-share distribution ratio and adjust the total distribution amount accordingly.

Equity Incentive: 577 Recipients Granted Nearly 17.72 Million Options

JCET's 2025 stock option incentive plan has been implemented in 2026. The company disclosed that the relevant incentive plan was approved by the first extraordinary general meeting of shareholders in 2026, and the granting matters were approved by the Board of Directors.

The company agreed to grant 17.7223 million stock options to 577 eligible incentive recipients, with August 19, 2026, as the grant date. Based on the company's current total share capital of 1.789 billion shares, the number of options accounts for approximately 0.99% of the total share capital.

In the stage where the semiconductor packaging and testing industry is upgrading towards high-end and advanced levels, the stability of core talent and team execution are crucial for project construction, customer introduction, and technology iteration. Subsequent attention should be paid to the performance assessment conditions corresponding to equity incentives, expense amortization, and their impact on the income statement.

Shareholder Structure: Largest Shareholder Holds 22.53%, National IC Fund Still in Top Ten

As of the end of the reporting period, the total number of JCET shareholder accounts was 847,500.

Among the top ten shareholders, Panshi Runqi (Shenzhen) Information Management Co., Ltd. holds 403 million shares, with a shareholding ratio of 22.53%, making it the largest shareholder; Hong Kong Securities Clearing Company Limited holds 61.4498 million shares, with a shareholding ratio of 3.43%; and China Integrated Circuit Industry Investment Fund Co., Ltd. holds 35.7792 million shares, with a shareholding ratio of 2.00%.

The top ten shareholders collectively hold approximately 550 million shares, corresponding to a shareholding ratio of approximately 30.72%. The company disclosed that there was no change in the controlling shareholder or actual controller during the reporting period, and the shares listed in the top ten shareholders were not pledged, marked, or frozen.