On the evening of October 10th, JCET (300708.SZ) "took the lead" in disclosing the first third-quarter report of the Shenzhen stock market for the year 2024.

The financial report indicates that JCET achieved a revenue of 2.022 billion yuan in the first three quarters of 2024, a year-on-year increase of 10.61%; the net profit attributable to the parent company was 160 million yuan, a year-on-year increase of 107.02%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 151 million yuan, a dramatic year-on-year increase of 2408.97%. However, the net profit attributable to the parent company in the third quarter was 46.486 million yuan, a year-on-year decrease of 10.62%.

Regarding the significant increase in net profit attributable to the parent company after deducting non-recurring gains and losses, a person related to JCET told a reporter from Times Weekly that "thanks to the increase in product prices and effective cost control, the gross margin for the first three quarters of 2024 was 14.10%, an increase of 4.26% year-on-year. Coupled with the increase in sales volume and cost control, the net profit after deducting non-recurring gains and losses increased by 1207.35% compared to the same period last year; the change in the identification criteria for non-recurring gains and losses affected the company's receipt of equipment investment subsidies, increasing the net profit after deducting non-recurring gains and losses."

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Unexpectedly, the day after the disclosure of the third-quarter report for 2024, which was October 11th, JCET's stock price closed at 10.99 yuan, down 13.87%.

The best third-quarter report since listing

Public information shows that JCET was established in April 2010 and went public on the Shenzhen A-share market in October 2017. The main business is the research and development, production, and sales of compound photoelectric semiconductor materials.

JCET disclosed that the company achieved a revenue of 689 million yuan in the third quarter of 2024, a year-on-year increase of 9.40%; the net profit attributable to the parent company was 46.486 million yuan, a year-on-year decrease of 10.62%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 45.5679 million yuan, a year-on-year increase of 89.22%.

Although the performance of a single quarter has decreased, overall, JCET's performance in the first three quarters of 2024 has clearly improved. During the reporting period, the company achieved a revenue of 2.022 billion yuan, a year-on-year increase of 10.61%; the net profit attributable to the parent company was 160 million yuan, a year-on-year increase of 107.02%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 151 million yuan, a dramatic year-on-year increase of 2408.97%.

Regarding the reasons for the performance improvement, JCET stated that thanks to the recovery of demand in commercial activities, cultural tourism, large-scale commercial performances, and sports events, the market terminal demand continues to warm up, the company's production capacity is released, and the sales scale remains stable.

The financial report shows that from 2017 to 2024, JCET's operating income was 475 million yuan, 379 million yuan, 788 million yuan, 1.006 billion yuan, 1.479 billion yuan, 1.541 billion yuan, 1.828 billion yuan, and 2.022 billion yuan, respectively.The overall business revenue continues to rise, and Juchuan Optoelectronics has delivered its best performance report since its listing for the first three quarters. At the same time, Juchuan Optoelectronics stated in its 2024 third-quarter report that the company adheres to a refined management model covering the entire business process, ensuring stable investment in research and development, continuous reduction in manufacturing costs, and a significant year-on-year decrease in financial expenses.

Juchuan Optoelectronics' 2024 third-quarter report shows that the company's financial expenses for the first three quarters were -31.7361 million yuan, a year-on-year decrease of 48.69%; administrative expenses were 27.7104 million yuan, a year-on-year decrease of 17.37%; and sales expenses were 12.95 million yuan, a year-on-year increase of 22.63%.

It is worth mentioning that due to the increase in government subsidies received, the company's other income during the reporting period was 12.5092 million yuan, a dramatic year-on-year increase of 4137.68%.

Adjustments have been made to the provisions for accounts receivable.

Previously, Juchuan Optoelectronics disclosed in its 2023 annual report that the company had a large balance of accounts receivable. Although the main customers for accounts receivable are long-term customers with strong operating strength, there is a risk that accounts receivable may not be recoverable or fully recoverable if the other party's operating conditions deteriorate in the future. At that time, the company's accounts receivable were 458 million yuan.

According to the 2024 third-quarter report, Juchuan Optoelectronics mentioned "changes in bad debt for accounts receivable during the current period," and with it, the company's credit impairment losses decreased by 215.05% year-on-year, thus reducing the risk associated with accounts receivable and improving asset quality. As of September 30, 2024, Juchuan Optoelectronics' accounts receivable were 441 million yuan, a decrease of 3.71% compared to the end of 2023.

In an interview, a person related to Juchuan Optoelectronics told a reporter from Times Weekly, "The reduction in bad debt for accounts receivable is mainly due to the company's effective credit control, positive recovery of receivables, and the reversal of bad debt provisions. The company received 2.388 billion yuan in cash for the sale of goods and provision of labor in the first three quarters of 2024, which is much higher than the revenue of 2.022 billion yuan."

In terms of asset scale, Juchuan Optoelectronics' cash flow has slightly decreased compared to the end of 2023. As of September 30, 2024, Juchuan Optoelectronics' cash and cash equivalents were 1.68 billion yuan, trading financial assets were 430 million yuan, short-term borrowings were 796 million yuan, and non-current liabilities due within one year were 116,300 yuan.

In addition, there have been some changes in the company's shareholder holdings. The 2024 third-quarter report shows that three of the top ten shareholders of Juchuan Optoelectronics have reduced their shares, namely Jinan Hanxiang Investment Management Partnership (Limited Partnership), Yin Zuozhao, and Zheng Suzhen. At the same time, Hong Kong Central Clearing Limited increased its holdings by approximately 372,000 shares during the reporting period.

Times Weekly reporter also found that individual shareholder Zheng Suzhen has reduced her shares several times since the beginning of 2024. Wind data shows that Zheng Suzhen reduced her holdings by 44,400 shares, 1.8955 million shares, and 201,600 shares in the first three quarters, respectively. As of September 30, 2024, Zheng Suzhen is the tenth largest shareholder of Juchuan Optoelectronics.In the secondary market, since September 23, JCET's stock price has continued to rise. However, as the market overall retraced, even the impressive Q3 report could not save the company's stock price from falling. As of the closing on October 11, 2024, the ChiNext Index fell by 5.06%, and JCET's stock price closed down by 13.87% at 10.99 yuan, reducing the company's market value to around 7.4 billion yuan.