Juncheng Technology Explains Low Profit Margin and Improvement Plan

Business by 2FIRSTS.ai

Jul.03.2024

Juncheng Technology Explains Low Profit Margin and Improvement Plan

Investors inquire about Jun Cheng Technology's low profit margin in its 2023 annual report, attributing it to TFT product development challenges.

Recently, on the investor interaction platform, an investor asked Jun Cheng Technology (301106.SZ): In the company's 23rd annual report, the gross profit margin for color screens was 4.33%, why is it so low? Is there any improvement this year?

In response to this, Jun Cheng Technology stated that the company has started laying out the TFT market for 2023, but TFT products are still in the research and development stage with low yield rates. Additionally, due to small production and sales volume, the company has not achieved economies of scale, resulting in lower profit margins. Thanks to early planning in 2023, yield rates have significantly improved this year, and the sales of e-cigarette TFT products and electric vehicle TFT products in 2024 have reached scale, becoming incremental businesses for the company. Cost efficiencies are now evident, and it is expected that there will be a satisfactory level of profit margins in 2024.

Previously, Jun Cheng Technology replied to investors that the products related to e-cigarettes are classified as consumer electronics products, and the current production capacity is sufficient. With the continuous discovery of incremental customers, the company's production capacity planning will be increased accordingly.

According to the official website of Jun Cheng Technology, the company is located in the Economic Development Zone of Jurong City, Jiangsu Province, China, adjacent to Nanjing. It was established in 2009 and is a professional manufacturer of LCD & LCM equipment from the Japanese company HITACHI. They specialize in producing and selling STN type LCD displays and display modules, and have obtained ISO TS16949, ISO 9001, and ISO 14001 certifications. The company covers an area of 25,000 square meters, with more than 10,000 square meters of purification workshops, and has the capacity to produce over 15 million various types of displays and 20 million display modules per year.

Also Read:

[1] Company Analysis: Jun Cheng Technology's Expansion in E-cigarette Industry

[2] Yinghe Technology's Overseas Sales and E-Cigarette Development Disclosed

#E-cigarettes #E-liquids #Asia #Market #China #Major companies

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Baltimore Moves to Zone Smoke Shops, Set Minimum Distance From Schools

Baltimore’s City Council in Maryland, building on recently enacted restrictions on “small box” dollar-store chains, has proposed a package of regulations for tobacco and vape retailers. The measures would create a standalone land-use category for “smoke shops,” establish distance buffers from schools and parks, limit exterior signage brightness, and schedule an informational hearing.

Oct.29 by 2FIRSTS.ai

Thailand National Health Commission Advances Vape Regulation Aligned with Anti-Drug Agenda

Thailand’s Deputy Prime Minister Sophon Saram, who chairs the National Health Commission (NHC), presided over a meeting aligning the nation’s e-cigarette control policies with the government’s “Quick Big Win” anti-drug strategy. The session reviewed progress under the National Health Assembly Resolution on Protecting Children and Youth from E-Cigarettes, which includes five key measures on awareness, enforcement, and prevention.

Nov.05 by 2FIRSTS.ai

Russian State Duma considers regulations to address widespread use of e-cigarettes among youth

Russian Duma considers comprehensive regulations to address widespread e-cigarette use among youth, including potential sales bans and flavor restrictions.

Oct.20 by 2FIRSTS.ai

BAT Malaysia Reports Q3 Results: Net Profit Plummets 89.5%, Stock Price Drops 15%

BAT Malaysia's Q3 results show a sharp 89.5% drop in net profit to RM7 million (approximately $150,000 USD), with revenue also falling to RM300 million (approximately $6.4 million USD). The company attributed the decline to new regulatory requirements, including pictorial health warnings and the retail display ban. Its stock dropped 15.25% to RM4.78 (approximately $1.02 USD).