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

Arizona e-cigarette shops ordered to pay $460,000 for selling tobacco and nicotine products to minors
Arizona e-cigarette shops ordered to pay $460,000 for selling tobacco and nicotine products to minors
Arizona Attorney General Kris Mayes announced Pro Source Supply LLC, Pro Source Vapes LLC, Pro Source CBD LLC, and owner Timothy Kell must pay $460,000 in restitution tied to a lawsuit filed last year alleging illegal sales of tobacco and nicotine products to underage buyers.
Jan.07 by 2FIRSTS.ai
Around 58,000 counterfeit vapes and tobacco seized from UK 's Hampshire streets over the past year
Around 58,000 counterfeit vapes and tobacco seized from UK 's Hampshire streets over the past year
UK's Hampshire Trading Standards says around 58,000 counterfeit vapes and tobacco products have been seized from Hampshire over the last year. Richard Strawson, Hampshire’s Head of Trading Standards, said officers often find vape products disguised under fake branding.
Jan.05 by 2FIRSTS.ai
PMI reshuffles South Africa leadership, appoints first female general manager
PMI reshuffles South Africa leadership, appoints first female general manager
Philip Morris International (PMI) said it has appointed Buena Barnes as general manager of its South Africa business, marking the first time a woman has held the role in the country. Barnes previously oversaw finance for Sub-Saharan Africa and has worked at GlaxoSmithKline South Africa and British American Tobacco South Africa.
Jan.19 by 2FIRSTS.ai
Japan Tobacco and Japanese Artist VERDY Team Up Again for Limited-Edition Ploom AURA Collaboration Set
Japan Tobacco and Japanese Artist VERDY Team Up Again for Limited-Edition Ploom AURA Collaboration Set
Japanese artist VERDY has renewed his collaboration with Japan Tobacco’s heated tobacco brand Ploom to launch a limited-edition “Ploom AURA × Wasted Youth” set in December 2025, which will be sold via a one-day pop-up store in Tokyo’s Harajuku district through a lottery system, with part of the lineup also available in limited quantities on Ploom’s online platform.
Dec.09 by 2FIRSTS.ai
Russian Region Targets Youth Vaping and Night Alcohol Sales
Russian Region Targets Youth Vaping and Night Alcohol Sales
The Speaker of the Legislative Assembly of Russia’s Nizhny Novgorod Region said efforts to curb night-time alcohol sales and the spread of e-cigarettes will continue in 2026. While illegal alcohol trade has largely been eliminated, youth vaping remains a major concern. Regional authorities are seeking federal approval to allow local governments to impose stricter restrictions on vape sales, alongside increased health education initiatives.
Dec.22 by 2FIRSTS.ai
NJOY and Altria ask federal court to halt ITC proceeding, alleging multiple constitutional defects
NJOY and Altria ask federal court to halt ITC proceeding, alleging multiple constitutional defects
A filing in the U.S. District Court for the Eastern District of Virginia (Richmond Division) shows NJOY and Altria entities submitted a plaintiffs’ reply supporting their motion for summary judgment, arguing the challenged ITC proceeding is unconstitutional on multiple grounds, including ALJ appointment authority, removal protections, and Article III limits under the Jarkesy framework. The plaintiffs seek summary judgment and a permanent injunction barring continuation of the ITC proceeding.
Jan.08 by 2FIRSTS.ai