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

Vietnam to Ban Investment and Trade in E-cigarettes and Heated Tobacco, with Exceptions for Export and Research
Vietnam to Ban Investment and Trade in E-cigarettes and Heated Tobacco, with Exceptions for Export and Research
Vietnam’s finance vice minister proposes banning investment and business in e-cigarettes and heated tobacco under a 2024 resolution, with possible exceptions for export-only products and research/medical/defense uses.
Oct.17 by 2FIRSTS.ai
Product | HQD launches the new HQD GO in the U.S., featuring three power levels and a ~$30 price tag.
Product | HQD launches the new HQD GO in the U.S., featuring three power levels and a ~$30 price tag.
HQD has listed the disposable HQD GO on its official site and U.S. channels. The device touts 35,000 puffs, three power levels with adjustable airflow, and a 30 mg/ml nicotine strength. On U.S. retail websites, it’s priced at about $29.99.
Oct.24 by 2FIRSTS.ai
The Pinnacle of Craftsmanship: Great Wall Cigars' Exclusive 2025 Releases
The Pinnacle of Craftsmanship: Great Wall Cigars' Exclusive 2025 Releases
Great Wall Cigars presents its latest premium collection, blending Chinese heritage with global craftsmanship. From the Cameroon-tobacco GX Lion’s Glory Toro to the zodiac-themed Year of the Horse and Year of the Snake editions, each cigar embodies artistry and rarity. Alongside the refined Spectacular No.2 and No.3 Extra Finos, the lineup marks Great Wall’s rise as a symbol of Chinese cigar excellence on the world stage.
Oct.11
Bulgaria to Increase Tobacco and Nicotine Product Taxes in 2026, Expected to Generate Additional Revenue of 130 Million Euros
Bulgaria to Increase Tobacco and Nicotine Product Taxes in 2026, Expected to Generate Additional Revenue of 130 Million Euros
Bulgaria will raise excise taxes on cigarettes, cigars, heated tobacco, and e-cigarette liquids starting January 2026. The increase, approved under the 2026 state budget, will be implemented gradually over four years. The Ministry of Finance expects the reform to generate about €130 million in additional revenue by 2026.
Nov.07 by 2FIRSTS.ai
KT&G to Complete New Indonesian Factory, Its Largest Overseas Production Hub
KT&G to Complete New Indonesian Factory, Its Largest Overseas Production Hub
According to Daily Hankooki, KT&G’s new factory in Indonesia will be completed this month and is scheduled to begin operations in February 2026. Once operational, the facility will have an annual production capacity of around 35 billion cigarettes, becoming the company’s largest overseas manufacturing base.
Nov.12 by 2FIRSTS.ai
Geek Bar Launches New Pulse Models in the U.S.: Thermochromic Design, Core Specs Intact
Geek Bar Launches New Pulse Models in the U.S.: Thermochromic Design, Core Specs Intact
U.S. vape retailer VapeSourcing has listed GEEKBAR Pulse 15K/25K Thermal Edition products, currently marked “Coming Soon.” Both models retain the core Pulse-series configuration but adopt a thermochromic, color-changing shell; the Pulse 15K is flagged as GEEKBAR’s first device to use this finish.
Nov.04 by 2FIRSTS.ai