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

Newport News, Virginia, USA, has passed new regulations requiring new e-cigarette shops to be approximately 610 meters away from schools
Newport News, Virginia, USA, has passed new regulations requiring new e-cigarette shops to be approximately 610 meters away from schools
New zoning regulations in Newport News, Virginia require e-cigarette shops to be at least 2000 feet from schools and daycares.
Sep.25 by 2FIRSTS.ai
Bloomberg-Backed Campaign Wins as Denver Votes to Ban Flavored Nicotine
Bloomberg-Backed Campaign Wins as Denver Votes to Ban Flavored Nicotine
Denver voters have upheld the city’s ban on flavored nicotine products—including fruity vapes and menthol cigarettes—with 72% in favor during the Nov. 4 election. The “Yes on 310” campaign, backed by $5 million from Michael Bloomberg, celebrated the result as a major victory for youth health. Opponents, mostly local vape shop owners, warned of economic harm and called the spending imbalance unfair.
Nov.05 by 2FIRSTS.ai
Russian Duma Committee Moves to Embed Local Vape Prohibitions
Russian Duma Committee Moves to Embed Local Vape Prohibitions
Fedot Tumusov, First Deputy Chair of the Duma Health Committee, called vapes the “most dangerous and least controlled” nicotine product and said restricting them should be a priority. While refining a government bill, the committee proposes granting regions the power to ban vape sales. Committee Chair Sergey Leonov said the illicit e-cig market exceeds 60%, with new licensing aimed at cleaning up the sector.
Oct.30 by 2FIRSTS.ai
South Korea’s Tobacco Law Amendment to Include Synthetic Nicotine, Projected to Add Up to $340 Million in Local Tax Revenue
South Korea’s Tobacco Law Amendment to Include Synthetic Nicotine, Projected to Add Up to $340 Million in Local Tax Revenue
Following the National Assembly’s approval of amendments to the Tobacco Business Act on September 22, redefining tobacco to include synthetic nicotine, the Korea Institute of Local Finance (KILF) estimates that local governments could gain between $37 million and $340 million in additional tax revenue in 2025 from tobacco consumption and local education taxes.
Nov.19 by 2FIRSTS.ai
Product | Dual-flavor, 30,000-puff SKE 2-in-1 launches across multiple UK distributor platforms.
Product | Dual-flavor, 30,000-puff SKE 2-in-1 launches across multiple UK distributor platforms.
E-cigarette brand SKE has listed its “30K Pro Max” bundle across multiple UK e-commerce platforms. The 2-in-1 device features dual flavors with a twist-to-switch design, draw activation, and mesh heating, with a claimed total of up to 30,000 puffs. Across several channels, single-unit pricing ranges from about £8.99 to £10.99.
Oct.24 by 2FIRSTS.ai
Russian police seize counterfeit e-cigarettes and tobacco products in Novosibirsk,products valued at about 1.3 million rubles
Russian police seize counterfeit e-cigarettes and tobacco products in Novosibirsk,products valued at about 1.3 million rubles
Russian police in Novosibirsk bust counterfeit e-cigarette and tobacco products, seizing items worth 1.3 million rubles. Consideration for criminal charges.
Oct.13 by 2FIRSTS.ai