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.

 

Notice

1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.

2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.

3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.

Copyright

This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.

This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.

World No Tobacco Day 2025: "Unmasking Temptation" Targets Flavors, Marketing, and Design Traps in Nicotine Products
World No Tobacco Day 2025: "Unmasking Temptation" Targets Flavors, Marketing, and Design Traps in Nicotine Products
The theme for World No Tobacco Day 2025 is “Expose the Deception, Protect Life: Unmasking the Alluring Illusions of Tobacco and Nicotine Products.” It directly addresses how the industry uses flavors, packaging, and marketing to create misleading product appeal.
May.06 by 2FIRSTS.ai
Product | First Wave of Listings After UK Ban: Nearly 200 Pod SKUs Released, with HAYATI, FUMOT Among Key Launches
Product | First Wave of Listings After UK Ban: Nearly 200 Pod SKUs Released, with HAYATI, FUMOT Among Key Launches
In the first week following the UK's disposable vape ban, the MHRA database showed zero active disposable product SKUs. Meanwhile, 194 new SKUs were added under refillable e-liquid containers and pods. Brands like RELX, FUMOT, HAYATI, and INNOKIN actively listed a wide range of 20mg/ml standard pods and pod-based devices.
Jun.05 by 2FIRSTS.ai
2Firsts Successfully Hosts NGP+AI Workshop, Launches Global Call for Outstanding AI Application Cases
2Firsts Successfully Hosts NGP+AI Workshop, Launches Global Call for Outstanding AI Application Cases
On April 15, 2025, 2Firsts held its first “NGP+AI” workshop in Shenzhen, focusing on real-world AI applications in the NGP industry—from formula digitization to automated flavor development and compliance tools. The event gathered professionals across R&D and tech roles. 2Firsts also launched a global call for outstanding NGP+AI use cases, offering media exposure, resource access, and innovation support to accelerate the industry’s intelligent transformation.
May.08
Victoria , Australia will Delay Tobacco Licensing to 2026, Raising Concerns Over Vaping Enforcement Gaps
Victoria , Australia will Delay Tobacco Licensing to 2026, Raising Concerns Over Vaping Enforcement Gaps
Victoria, Australia will delay its tobacco sales licensing to 2026 due to limited enforcement resources. The new rules exclude vaping sales, with enforcement handled by federal agencies. High fees, limited powers to close illegal stores, and just 14 inspectors have raised major concerns among retailers and authorities.
Apr.28 by 2FIRSTS.ai
Russian NGO Calls for Halt of 2025 E-cigarette Expo, Citing Illegal Promotion of Nicotine Products
Russian NGO Calls for Halt of 2025 E-cigarette Expo, Citing Illegal Promotion of Nicotine Products
The Russian social movement organization "Сорок Сороков" has filed complaints with the prosecutors' offices in Moscow and Novosibirsk, demanding the ban of the 2025 E-cigarette Expo (Vape Club Show). The complainants argue that the event constitutes illegal promotion of nicotine products and sets a bad example for young people.
May.07 by 2FIRSTS.ai
British American Tobacco to Exit VUSE E-cigarettes in Malaysia in Q3 2025
British American Tobacco to Exit VUSE E-cigarettes in Malaysia in Q3 2025
British American Tobacco Malaysia (BAT) plans to exit the VUSE e-cigarette product in the third quarter of 2025 to comply with new regulations that will take effect in Malaysia on October 1, 2025. The move is expected to have a limited impact on the annual financial performance.
Apr.29 by 2FIRSTS.ai