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

R.J. Reynolds Seeks Dismissal of “Carbon Neutral” Lawsuit over Vuse E-Cigarette Claims
R.J. Reynolds Seeks Dismissal of “Carbon Neutral” Lawsuit over Vuse E-Cigarette Claims
R.J. Reynolds Vapor Co. has moved to dismiss a class-action lawsuit alleging false “carbon neutral” claims for its Vuse e-cigarettes, arguing its statements were based on independent certifications from Verra and Vertis, not misleading consumers.
Oct.23 by 2FIRSTS.ai
2Firsts Insights | From Limited-Edition Frenzy to Interactive Lead-Gen: The 2025 Halloween Shift in Vape Marketing
2Firsts Insights | From Limited-Edition Frenzy to Interactive Lead-Gen: The 2025 Halloween Shift in Vape Marketing
For Halloween 2025, leading vape brands such as HQD and ELFBAR are running overseas social-media engagement campaigns—covering points programs and UGC giveaways with age/region restrictions. Unlike 2024’s wave of themed devices, no brand-new Halloween limited editions have appeared on major U.S. channels this year; only RAZ has restocked last year’s version.
Oct.31 by 2FIRSTS.ai
Product | FASTA Unveils New U.S. Offering, Citing “Made in USA” Status and Texas Compliance
Product | FASTA Unveils New U.S. Offering, Citing “Made in USA” Status and Texas Compliance
FASTA has launched a new disposable, the FASTA ALIEN 51K, on U.S. online channels. Retailer Mi-Pod describes the product as “assembled and filled in the U.S.” and labels it as compliant with Texas e-cigarette registration requirements. The ALIEN 51K is now available via Mi-Pod and Vaping, with a suggested retail price of about $19.99.
Nov.12 by 2FIRSTS.ai
Multi-agency raids in Swansea: 9 vape shops ordered to suspend operations over illegal sales and counterfeit tobacco
Multi-agency raids in Swansea: 9 vape shops ordered to suspend operations over illegal sales and counterfeit tobacco
Three-day Swansea sweep by Trading Standards with police, HMRC and immigration: 14 shops inspected; 9 shut; 11 arrests; 5 vehicles seized; 2,292 vapes confiscated; two shops ordered closed for up to three months.
Oct.09 by 2FIRSTS.ai
E-Cigarette Scene in Netflix India Series: Government Seeks Action Taken Report
E-Cigarette Scene in Netflix India Series: Government Seeks Action Taken Report
India’s National Human Rights Commission (NHRC), acting on a complaint, has asked the Ministry of Information & Broadcasting and the Mumbai Police to submit an Action Taken Report (ATR) and, according to multiple media reports, recommended appropriate measures regarding an e-cigarette-use scene in Netflix’s series The Ba*ds of Bollywood. The scene is alleged to lack statutory health warnings and may conflict with the Prohibition of Electronic Cigarettes Act, 2019. The series, directed by Aryan K
Sep.23 by 2FIRSTS.ai
FDA Calls on Retailers to Remove Illegal E-Cigarettes from Shelves, Will Send List of Legal Products to 300,000 Stores
FDA Calls on Retailers to Remove Illegal E-Cigarettes from Shelves, Will Send List of Legal Products to 300,000 Stores
FDA launches national retail compliance initiative to combat illegal e-cigarette sales targeting youth, issuing guidance materials to over 300k retailers.
Oct.08 by 2FIRSTS.ai