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.

 

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

New Poll Shows 80% of Voters Support Strengthening Enforcement Against Illegal E-Cigarettes, Could Impact Swing Districts
New Poll Shows 80% of Voters Support Strengthening Enforcement Against Illegal E-Cigarettes, Could Impact Swing Districts
A new poll shows 80% of voters support stronger enforcement against illegal e-cigarette production, potentially impacting swing districts.
Oct.17 by 2FIRSTS.ai
Abu Dhabi Closes Two Stores Near Schools Over Vape Sales Violations
Abu Dhabi Closes Two Stores Near Schools Over Vape Sales Violations
The Abu Dhabi Business Registration Authority (ADRA) closed two commercial establishments and issued 61 warnings and 18 fines to outlets near schools for violating tobacco and e-cigarette sales regulations, according to the Emirates News Agency (WAM). The measures aim to protect youth and ensure compliance with the Federal Anti-Tobacco Law.
Nov.06 by 2FIRSTS.ai
Black Friday Meets Thanksgiving: Multiple E-Cigarette Brands Launch Discounts and Giveaways Across North America and Europe
Black Friday Meets Thanksgiving: Multiple E-Cigarette Brands Launch Discounts and Giveaways Across North America and Europe
As Black Friday, Cyber Monday and Thanksgiving shopping season arrive, e-cigarette brands such as OXVA and VAPORESSO, together with online retail platforms, have launched concentrated discount and giveaway campaigns running from mid-November to early December. Promotions include tiered reductions, sitewide discounts, bundle deals and interactive prize draws, covering North America, the UK and parts of the EU market.
Nov.26 by 2FIRSTS.ai
South Australia Issues Closure Orders to 100 Stores over Illicit Tobacco and Vapes
South Australia Issues Closure Orders to 100 Stores over Illicit Tobacco and Vapes
South Australia has imposed 28-day closure orders on 100 stores caught selling illicit tobacco and vapes since new ministerial powers took effect on 5 June. The State Government has seized about $50 million worth of illegal products, including over 41 million cigarettes, 140,000 vapes and 13,585 kilograms of loose tobacco. Two long-term closure orders have been issued and five more are before the Magistrates Court, supported by a $16 million illicit tobacco taskforce and tough new penalties.
Nov.14 by 2FIRSTS.ai
JT Q3 2025: Revenue +18%, Profit +30%; RRP Volume +40%; Guidance Up
JT Q3 2025: Revenue +18%, Profit +30%; RRP Volume +40%; Guidance Up
Japan Tobacco (JT) delivered a strong Q3 2025. Revenue rose 18.3% year over year to ¥947.2 billion, with adjusted operating profit up 27.8% to ¥279.0 billion (+20.8% at constant currency) and net profit up 29.7% to ¥176.7 billion. Growth was led by reduced-risk products (RRP): total RRP volume climbed 40%, with heated tobacco (HTS) up 53%. In Japan, the launches of Ploom AURA and EVO pods pushed HTS category share to 15.5%, while the Ploom user base has nearly doubled versus two years ago.
Oct.30 by 2FIRSTS.ai
Tasmania, Australia Will Introduce New Laws Targeting Illegal Vape and Tobacco Retailers
Tasmania, Australia Will Introduce New Laws Targeting Illegal Vape and Tobacco Retailers
Tasmania will introduce new laws next year to tackle the illegal trade in tobacco and vapes. The legislation will strengthen penalties, allow inspectors to issue on-the-spot fines and shut down non-compliant retailers, and enhance coordination between police and health authorities.
Nov.11 by 2FIRSTS.ai